$IWM closed today with a 14-period RSI above 80.
This has only happened three other times in history.
🔹Oct. 3, 2017 RSI = 85.69
🔹June 5, 2003 RSI = 84.35
🔹June 21, 2000 RSI = 80.85
The most recent two occurrences were followed by a mild pullback in the short-term: -4% in '03 and 3% in '17 — neither marked a major market top.
The 2000 event didn't quite mark the top (that happened about 3 weeks later) but it too was followed by a drawdown of -4% over the following week.
tl/dr: This has been a historic move, and the index is significantly extended.
#foodforthought
current chart attached
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