Posted by sbaxman111 on 22nd of Aug 2017 at 03:25 pm
This is one of those days where yesterday's RSI-2 closing
value of 7.53% has become 76.67% st the moment, and the SPX is at
80.54 and the NDX is at 81.48 - roughly 3'15 pm. The bigger the one
day spread overnight, the higher the likelihood of a next day
reversal to the other direction.
Statistically, I have found a pretty high correlation for a
single digit RSI-2 level from a major index like RUT, that turns
into a next day value for one or more of the major indexes that
exceeds 70% at the close as being predictive of a reversal for the
next trading day.
This is statistically even more likely when this event also
has numerous short-term indicators at extremely overbought values.
This would include the RUT's 60 min ADX-2 value currently at more
than 99%, the 60 min RSI-2 at 99.74%, the 60 min RSI-4 at 92.85%,
the daily Wm%B-2 at its maximum 0.00, along with numerous other
indicators that I look at each day.....60 min NAAD, NYAD,
etc
Of course, I am not stating that this is a "sure thing" by
any means, only pointing out the statistical history of the
pattern, and the short-term indicators.
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Daily RSI-2 patten
Posted by sbaxman111 on 22nd of Aug 2017 at 03:25 pm
This is one of those days where yesterday's RSI-2 closing value of 7.53% has become 76.67% st the moment, and the SPX is at 80.54 and the NDX is at 81.48 - roughly 3'15 pm. The bigger the one day spread overnight, the higher the likelihood of a next day reversal to the other direction.
Statistically, I have found a pretty high correlation for a single digit RSI-2 level from a major index like RUT, that turns into a next day value for one or more of the major indexes that exceeds 70% at the close as being predictive of a reversal for the next trading day.
This is statistically even more likely when this event also has numerous short-term indicators at extremely overbought values. This would include the RUT's 60 min ADX-2 value currently at more than 99%, the 60 min RSI-2 at 99.74%, the 60 min RSI-4 at 92.85%, the daily Wm%B-2 at its maximum 0.00, along with numerous other indicators that I look at each day.....60 min NAAD, NYAD, etc
Of course, I am not stating that this is a "sure thing" by any means, only pointing out the statistical history of the pattern, and the short-term indicators.