An Overbought Market on May 12th ??
C-RSI "overbought" condition ...
We have been showing this chart to our paid subscribers for days, and now we will share it with you.
This chart shows our C-RSI levels (zero based Relative Strength) going back to July 2007 for the NYA and the SPY.
Note the C-RSI resistance level that goes all the way back to July 2007.
On Friday May 8th. (2009), the C-RSI on the NYA Index and the SPY hit the same July 2007 resistance level.
This was an overbought condition that substantially raised the risk levels in the market. (Yesterday, the C-RSI was below a shorter term resistance line on the NYA and below the support on the SPY ... risk levels are still rising.)
On May 12th. our C-RSI started dropping. What has happened since then?
The S&P 500 closed at 908.35 on May 12th, and it closed at 888.33 yesterday ... 2.2% lower. Yesterday, the Institutional "core holdings" Index closed 1.97% lower than it was on May 12th.