At first glance, the idea seems simple. If a market becomes “overbought”, a pullback should follow. That assumption usually comes from RSI, where readings above 70 are often interpreted as a warning that prices may have moved too far, too quickly.
In cryptocurrency markets, Bitcoin often sets the overall direction, but Ethereum frequently plays an important role in signalling shifts in investor sentiment. While Bitcoin is widely viewed as the anchor of the crypto ecosystem, Ethereum tends to gain momentum when risk appetite strengthens across the market.
The S&P 500 remains in an uptrend over the longer term, but recent price behaviour shows signs that momentum has been cooling. The chart illustrates this clearly: the index has struggled to make meaningful new highs since late January, and the decline through March shows a shift toward slower, more uneven price action.
Gold has begun to stabilise after several weeks of persistent downside pressure. The decline surprised many traders because throughout late 2025 and the start of this year, gold often appeared stretched on the chart, moving quickly and pausing only briefly. We previously noted that when gold accelerates without meaningful pullbacks, the market can feel overheated, with momentum indicators signalling conditions that are difficult to sustain for long.
When geopolitics heats up, oil is usually the first market to react. A sudden escalation, a threat to supply routes, or even a hint of regional instability can push crude higher within minutes.
