Market Oversold?
Posted on Mon 9th Mar, 2009 10:08:36 AM
Real quick before I release the latest edition of the Carnival of Personal Finance I wanted to share Sean’s latest technical analysis from EPIC Insights of both the Dow Jones and the S&P 500.
What needs to be taken into focus is the RSI indicator showing oversold (circled in blue). This is the first time in some nearly 30 years that this has happened to such an extreme. Not really a surprise but still worth noting. Even this is oversold it can remain in the red for a LONG TIME.
Both charts are monthly views and pull 28 years I believe of data.
Read Sean’s Latest Edition of EPIC Insights to see what Sean has to say RE the below.
Click to View Full Size
Click to View Full Size
More on this topic
(What's this?)
Market In Denial Phase Of Sentiment Cycle
(Disciplined Approach to Investing, 3/9/10)
The Key Levels On The Dow30, S&P500 and Nasdaq: Strong Uptrend Unless These Levels are Broken
(Shocked Investor, 3/4/10)
BEWARE THE DOUBLE TOP
(THE PRAGMATIC CAPITALIST, 3/13/10)
Ya, the charts show that the market is oversold, but deep down we all know this market has a long way to go before it bottoms out…