The Last Time The Market Was So Overbought, This Happened

The last 3 weeks have been a near unprecedented rip higher in stocks... as markets anticipated G-20 cooperative actions (and then BoJ and ECB follow-through) creating a vicious short-squeeze bounce..

 

This has sent The McClellan Oscillator to its most overbought since January 2009...

 

What happened then?

The Group of 20 leaders from major developed and emerging economies had pledged on their meeting on Saturday short-term measures such as fiscal stimulus in order to try to keep the global economy from falling into a deep slump and promised to look at ways to tighten regulations to prevent future crisis.

Which sent stocks soaring in another major short-squeeze hope bounce...

 

That did not end well!