By Lawrence G. McMillan
Two indicators that we have only briefly discussed in the past are now at an overbought state. Since each has merit, it was decided that a study should be done on the data to see if there was some usefulness other than just yet another overbought indicator. Sometimes when one looks at data in just the right way, a new thought for an indicator will jump into one’s head, and that’s pretty much how these came about.
The first is based on the rolling return on the S&P 500 Index ($SPX). The second is based on short-term $SPX extremes, when it moves at least 4 standard deviations away from its 20-day moving average...
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