Joker1 since I seldom use lagging indicators (which are your...

Joker1 since I seldom use lagging indicators (which are your main pointers to overbought and oversold) somebody else here could give you a better explanation.

My main indicators to conform pressure points are volume, and more important on balance volume (which shows whether buyers or sellers are in command). You can see an overbought or sold situation simply by looking at the angles of rises and falls on your charts. Look at the sharp rises in July, August and September, all were corrected. The same can be said for Monday's fall. I also look at charts for others in related sectors (eg WPL in this case).
WPL rose on Monday against a crash from HDR, and should have been equally effected by the news, which indicated the market may have overreacted.

Bomber