BSE small cap
15 Jul 2021 ● 07:03 AM
As the market breaks out to new all-time highs, the small-cap index is finally getting overbought. RSI at 82 does not mean it cannot rise to 87, but we can mark the entire advance from the April lows as a 5 wave up move and in the late stages of this setup. One near-term pullback appears possible in the weeks ahead. If not then maybe just a short-term knee jerk reaction someday to cool off the high readings in RSI. Wave (2) of a larger 5 wave advance is one possible outcome. This could happen as large caps take the front seat in the market's next move.