S&P 500 Overbought - Will We See a Dip?

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The S&P 500 continues its relentless uptrend as we start the second half of the year, but it is notable that the 14-day RSI indicator is at its highest level since 2023. While not a sign of an imminent pullback in and of itself, it does suggest that the short-term risks are tilting to the downside ahead of Fed Chairman Powell's Humphrey-Hawkins Testimony and the US CPI report later this week.

If we do see a near-term dip, the rising trend line and previous-resistance-turned-support at 5500 will be the key support levels to watch.

-MW