Although the index is lower to round out the week, the S&P 500 (SPY) repeatedly reached more record highs recently. With the rally largely unabated, the index has been in overbought territory (> one standard deviation above its 50-DMA) every single session since April 14th. Not only has the S&P been overbought, but firmly so. Of the 24 consecutive sessions in overbought territory, the past 23 have seen the index close at least 1.5 standard deviations above its 50-DMA.
As shown below, this is now the longest streak of firmly overbought readings (consecutive trading days with the index at least 1.5 standard deviations above its 50-DMA) since September 2020. Looking back to the start of the 5-day trading week in 1953, there have been a total of 22 other streaks of at least 23 days. The longest of these extended to 33 straight sessions in March 1983 and May 1967.
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