SOX Hits Extreme Overbought Levels: What History Says Happens Next

The SOX has surged 50% and is now showing record overbought RSI readings, signaling stretched momentum. History points to a near-term pullback of roughly 5% to 11%, though the article still allows for upside over the following weeks. The setup implies elevated volatility and a higher one-year downside risk, consistent with an Elliott wave reset.

Analysis

The SOX has surged 50% and is now showing record overbought RSI readings, signaling stretched momentum. History points to a near-term pullback of roughly 5% to 11%, though the article still allows for upside over the following weeks. The setup implies elevated volatility and a higher one-year downside risk, consistent with an Elliott wave reset.