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DJ RSI 86. How high can RSI go red?

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13/01/18

12:13

Post #: 30277643
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Originally posted by redbacka ↑

Excerpt from my daily report on the XJO forum:

SP500:

SP500 finished up, +0.67%. RSI was up to 83.4. RSI on the DJ >86. The trend is up. Stay with the trend. But get ready to bail out.

This chart shows the Equities Put/Call Ratio, 10-Day Average. This is a contrarian indicator. The Equities Options is where the speculative retail traders hang out, i.e., the “dumb money”. High readings – traders are very fearful – that gives a buy signal. Low readings – traders are too optimistic – that gives a sell signal. Clearly traders are currently far too optimistic. When this starts to rise - that will be the time to bail out.

Breadth indicators remain positive and rising to new high levels.

When breadth starts to narrow - that's another time to get concerned.

Here's the cumulative Advance/Decline Line:

Chart for NewHighs/NewLows:

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DJ RSI 86. How high can RSI go red?

XSO Value at posting: 2,760.1
1 Upvote

0 Great analysis

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