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S&P Overbought Conditions Returned But Momentum Remains Supportive

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S&P continues drifting higher after climbed above the lower boundary of the pink band in mid-November.  Overbought conditions have returned on an intraday basis but momentum remains supportive so downside risk could be limited.  As for strategy, we’d look to reduce exposure into overbought strength, which might take the S&P closer to the lower boundary of the red band, currently at 4670, before a significant pullback unfolds

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