Chart Of the Week – S&P 500

The S&P 500 closed Friday at a new all-time high of 7,165, with the 14-day RSI pushing back into overbought territory above 70. 

What stands out on this chart is the full round trip the market has made in a short period of time. The RSI fell into oversold territory below 30 just weeks ago, one of the more extreme readings of the past three years, which in hindsight proved to be a strong buying opportunity. 

Since that low, the index has rallied sharply back to record highs, and the momentum indicator has followed it all the way to the other end of the range.