A stock-market relief rally appeared to be shaping up to start the week, but the potential reward from chasing a bounce from here remains limited, according to one Wall Street technician.
The chart below shows that the RSI indicator reached overbought territory midweek before falling into oversold territory on Thursday. U.S. stocks on Monday continued a breather from the August pullback, with the large-cap S&P 500 index on pace to post its first back-to-back daily gain in a month. See: Fed’s Powell left investors with a cloud of uncertainty, and the U.S. stock market faces a difficult week ahead
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