Dual Reality Existence Paused….For the past few months, it has felt like Americans were living 2 separate lives. There is the America that has been damaged by a virus, with unemployment and poverty afflicting millions. On the other hand, there is the America that seems to have a boatload of cash, with nascent investors pouring millions into the blue chip companies dictating the digital age. Apple (-6.7%) and its FANG frenemies have been carrying the stock market on their backs. Enter straw. Not saying anything is broken, but today’s NDX move -4.4% thus far led by the aforementioned “cool crowd,” is the pullback logic and stretched valuations have been awaiting. It all makes sense in hindsight of course, as per the below NDX RSI chart and the deviation from the 200-dma. This is the most overbought the Nasdaq has been in some time. The fact of the matter is there is always a pullback at some point, but a pullback doth not mean the end.
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