The S&P 500 Index is overbought. This is a situation when stock prices have risen too fast over a short-term period of time and may be susceptible to a pullback as a result. And the S&P 500 Index is currently as overbought as it has been in over a decade. But just because stocks are overbought does not mean that a sustained decline is likely to follow. In fact, stocks can not only remain overbought for an extended time, but they often find themselves pushing even further to the upside through any fleeting pullbacks or periods of consolidation in the immediate days, weeks and months that follow.
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