What you need to know on Wall Street today
For months, stock market pessimists have been saying US equities are overvalued. And as of this past week, they have a major piece of tangible evidence.
The measure in question is the so-called relative strength indicator, which indicates when the stock market has gotten too stretched in either direction. An RSI measure exceeding 70 means the market is overbought and a downturn may be imminent. A drop below 30 indicates an oversold condition.
The RSI for the benchmark S&P 500 climbed above 70 last week and stayed in that overvalued territory for five straight days. The index's repeated climb to record highs is now in danger - at least if the past 12 months is any indication.
Economist Richard Thaler has been awarded the 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, often considered to be the most prestigious prize in the field of economics. In addition to his day job as an economist, Thaler once had a cameo appearance in the film "The Big Short," next to pop star Selena Gomez.
Elsewhere in economics news, Amazon might be lowering the rate of inflation globally. And a report co-authored by a People's Bank of China researcher says China's economy is about to hit a wall.
In crypto news, a former Goldman Sachs VP who founded a crypto hedge fund says betting on bitcoin is like betting on the internet in the 90s. And hackers broke into Amazon's cloud to mine bitcoin.
In markets news and views:- Wall Street banks are bullish on earnings season - but for different reasons
- Turkish markets are getting slammed after the US and Turkey suspend visa services
- GOLDMAN SACHS: Gold got rejected at a key level and could be setting up for a big drop
- GE is sliding after an activist investor lands a board seat
- BARCLAYS: We're still waiting on Tesla's "iPhone moment"
- RBC: Disney's new streaming service could be absolutely massive
Lastly, meet the 30 biotech leaders under 40 who are searching for breakthrough treatments and shaping the future of medicine.