Tag Archives: Relative Strength Index

An Unprecedented Move To Financial Crisis Lows

The average RSI(14) of Dow 30 stocks fell from a high of about 69 to a low of 34 in six days. This is a violent correction but at the same time it offers hopes of partial recovery at least … Continue reading

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Weekly RSI(14) On S&P 500 Chart [Premium Articles]

Charts appeared in financial blogosphere after the all-time high in the index on Friday, January 12, 2018, that show the highest level in weekly or even monthly RSI(14) in more than 100 years in S&P 500. Do these charts make … Continue reading

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Overbought Vs. Momentum And Why Journalists Should Avoid Technical Analysis

The headline yesterday in a respectable mainstream financial media website was about stocks not having been so overbought in 22 years. Is this a correct assessment or a journalist’s way of saying that stock market momentum is highest in 22 … Continue reading

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The Dow Jones Industrial Average Just Did Something Rare

The Dow Jones Industrial Average stayed overbought for the whole month of October in the sense of a classical technical analysis measure. This has only occurred three more times in the last 103 years.

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The Failed “Market Is Technically Overbought” Narrative

The S&P 500 is overbought in the last three days according to a popular indicator. Shorting a technically overbought S&P 500 has been a losing strategy in the last 57 years as shown in this article. Yet, the “market is … Continue reading

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