Another sign the QQQQ's may be overbought based on technical analysis charts

Arthur Hill who's recently been added to the roster of technical analysts posting at the Stockcharts.com blog-based newsletter, ChartWatchers, has posted RSI Breaks 70 for QQQQ - from the Don't Ignore This Chart! blog. RSI is considered overbought when above 70 and oversold when below 30. (Other index-based exchange-traded funds (ETF's) such as the Russell 2000 (one ETF being IWM), S&P 500 (one ETF being SPY) and Dow Industrials (one ETF being DIA), the standard 14-day RSI has yet to reach and poke over this overbought level. My personal note - that doesn't mean that these other indices are "guaranteed" to keep rising until they do get there. A technical analysis will also want to consider whether or not these upward movements are in bull markets, or in bear market rallies. The reason is that a bear market rally can become overbought more quickly, i.e. with the indicators not at the same absolute level, as in bull markets. Also, a true bull market trend will tend to remain overbought for a longer length of time. But a bear market rally typically does not have the staying power to remain overbought for any great time period.

Note that these comments are based on looking at the daily charts. You'll also find these and other technical analysis indicators reviewed in other posts here, such as those I've been posting up about the Nasdaq 100 (NDX) index and the QQQQ's (like the hourly-chart Elliott Wave comment about the QQQQ's needing to get above $35.18 in order to negate a potential trend reversal, at least for the near term). And in the work of others posted and referred to here, Andre Gratian and Tony Caldaro among others.

Update NOTE: QQQQ in premarket above 35.18 so for swings, that prior setup comment negated. And as I mentioned in a recent post, nothing happens on swing charts until a pattern completes with confirmation, first in hourly and then daily charts. Including (but not limited to) moving under prior day low, then trendline break. Haven't seen that yet.