There is a better visual of RSI. That is the T-line. Watch how the individual charts that remained above the T-line in Yesterday’s sell off will likely have a much faster and stronger recovery than those that close well below the T-line Yesterday. Although the market is rebounding, be careful. It may merely be moving back up to the level it was trading prior to the final hour of panic selling. A close below the halfway point of Yesterday’s candle in the indexes would still illustrate the Bears are currently in control. The NASDAQ is currently the strongest index in today’s trading but still not yet back up to the halfway point of Yesterday’s candle. The indexes Gapping down from candlestick reversal signals demonstrates the strength of the selling. The downtrend need something dramatic to offset that message.
May 18th Daily Market Comments
There is a better visual of RSI. That is the T-line. Watch how the individual charts that remained above the T-line in Yesterday’s sell off will likely have a much faster and stronger recovery than those that close well below the T-line Yesterday. Although the market is rebounding, be careful. It may merely be moving back up to the level it was trading prior to the final hour of panic selling. A close below the halfway point of Yesterday’s candle in the indexes would still illustrate the Bears are currently in control. The NASDAQ is currently the strongest index in today’s trading but still not yet back up to the halfway point of Yesterday’s candle. The indexes Gapping down from candlestick reversal signals demonstrates the strength of the selling. The downtrend need something dramatic to offset that message.