Marketlicious

There is a trading theory that goes like this.

Candlestick theory states that after about eight to ten
new highs or lows, without a meaningful correction, the odds are strong
that a significant correction will unfold. Each new high or new low for
the move is called a "new record high" or "new record low" by the Japanese.

Referring to the chart of S&P 500 above, we have actually seen 10 new highs since it started its rally on 10 March. If slow stochastic is used an overbought/oversold indicator, this has been the longest period we are in the overbought zone (above 80) since May 2008. So, are we going to see another bear leg? Although I still think that the bear market has not ended yet, RSI is telling me another story. It told me that the bull is back at least for the medium term. It looks like both sides are equally possible now.