Indices near top of its range ?

Indices are showing rare strength in climbing over 200 DMA, only sector that has not gone over 200 DMA is Russell 2000.

To further analyze, let us check RSI :

RUT             74.58

DOW           69.43

S&P 500     69.01

SOX            67.84

Nasdaq      66.62

Based on all of the above RSI numbers, history tells us we are overbought and is near top of the range for RSI.

Russell 2000 is way above overbought, DOW, S&P 500 are near 70 area.

Nasdaq is the only one which has some room to hit 70 area.

As you can see from RUT, it is above critical 70 area.

SO...how do we interpret these overbought RSI numbers, we may have to go back to election of Donald Trump when we were touching 80 area.

YES...it is possible to go above current RSI readings.

IF we go above these numbers then we are entering "severely overbought "

CAUTION is advisable IF we are hitting 80 RSI area.....

Pullbacks from 80 area is " sharp & sudden "

As they say " Bulls make money Bears make money pigs get slaughtered "

Greed may not be good as we get close to 80 area

All Indices are hitting top of its range, they may go over top of the range, but drop can be very painful.....

Please exercise extreme caution this short week.

Good luck with your own research about this TAPE and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed