Is The RSI Index Really A Contrarian Indicator Worth Following?

The S&P 500 is overbought. Even though some Wall Street analysts are arguing that improving fundamentals support higher equity prices, when seen through the eyes of the RSI Index, the S&P 500 is due for a pullback.

The RSI Index or Relative Strength Index is a momentum oscillator, designed to measure the speed and change of price movements. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The 10 Most Expensive Stocks In The S&P 500

So far this year, the RSI for both the S&P 500 and EM equities has risen above 80, but should traders and investors be concerned?

Should you pay attention to the RSI Index?

According to a recent report from Morgan...