MarketWatch Options Trader: S&P 500 is now overbought — but that doesn’t mean sell

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The S&P 500 Index (SPX) has made a series of new all-time highs so far in 2020, and its chart is strongly positive: The moving averages are rising, and what small pullbacks there are form a series of higher highs and higher lows.

The only “complaint” might be that the rise has been so persistent that the market is overbought. But “overbought does not mean sell,” so we would need to see some violation of support before considering a bearish position.

There is minor support at S&P 500

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