Technical Failure

On my radio show today, I mentioned that I could see the Dow Jones rising to 9100 but I cautioned we were at some technical areas where the market could reverse. 

Below is a picture of the S&P 500.  You can see from the relative strength index that the S&P 500 has never gone above 50 on RSI since this selloff began.  It failed right at that spot once again.  So, going above 50 on the RSI would be one test technically speaking the market has to pass.

I will caution you that RSI is just one indicator I use among many others but it has worked well in preventing me from committing too much money to equities.

 

S&P 500 with RSI

S&P 500 with RSI

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