26 February 2008
Pending DXD Buy Signal Tomorrow?
My sweet little chart shows eight out of 30 Dow components are in the red, i.e. they have a 2-day RSI reading of 90 or greater. Another 11 out of 30 Dow components are in pink, i.e. they have a 2-day RSI reading of 80 to 90. The overall Dow Jones Industrial Average scored a market close 2-day RSI of 86.
Normally, I am looking for at least 15 Dow components to have a RSI score above 90, or an overall DJIA RSI of 90 before I feel most comfortable pulling the trigger on purchasing shares of DXD. If the Dow continues the overall upward movement of the last two trading days tomorrow, my chart says that I should expect a DXD buy signal.
Posted by WershovenistPig at 12:51 AM