S&P Now Firmly In Overbought Territory Despite Pressing Consumer Challenges

"There have only been three better months of S&P performance than November's in the last 10 years" writes UBS floor trader Mark Psaki, but better context (capturing the seasonality) would be that this was the second best November since 1980, with only the 2020 vintage generating a higher return.

More importantly, however, the UBS trader notes that just one month after fear and loathing had gripped the broader market, the S&P is now formally in overbought territory, which he notes "generally tends to be a pause button for risk appetite (especially this year)."