There may not be a bubble in U.S. stocks, but a correction may be coming

Sina Financial News Some market participants believe that the momentum of the continued rise in U.S. stocks will take a break, although it is unclear whether the stock market is in a bubble or a strong bull market. According to BofA, the S&P 500 has risen more than 25% in the past five months, which has only happened 10 times since the '30s. Michael Arone, chief investment strategist at State Street Global, said: "The market has priced in a lot of good news. "In my opinion, it just shows that the risk is skewed to the downside. "Some indicators are also sounding warnings. The weekly Relative Strength Index (RSI) of the S&P 500 climbed just above 76, a level rarely exceeded since 2000, Miller Tabak data showed, a measure of whether stocks are overbought or oversold. The last two times the indicator has surpassed this level, followed by a sharp sell-off: in January 2018 the S&P 500 fell by 10% and in January 2020 the index plunged by 30%. Matt Maley, chief market strategist at the agency, said: "None of this means we're seeing a major long-term top. "It does, however, tell me that the time is ripe for a substantial pullback. ”