Strong as a Bull, or Overbought?

By: Marty Chenard | Thu, May 7, 2009
Print Email

If you look back 22 months, to July 2007, there have been 4 occasions where the 30 day Relative Strength has been 58 or higher.

Those occasions are on the chart below.

Start at the left and observe the first three occasions where I drew the vertical white lines with arrows.

What do you notice?

If you say that the market peaked at each of those occasions, you would be correct.

So now, it is May 7th. and yesterday, the RSI closed at 60, the same level as July 2007. The NYA (New York Stock Exchange Index) has been charging up as if on steroids during the past few days. But still, it is now at an overbought level where market peaks were found in the past few years. That sounds more like caution is the prudent thing right now. Overbought conditions can often last longer than some investors expect, but one thing is clear ... risks levels are now elevated.

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

StockTiming.com is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to StockTiming.com ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2014 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/