The total Dow RSI "MVP" surpasses 150% for the first time in 1 year and 4 months! What does this imply? [From Dr. Tetsuo Inoue's newsletter]
From the investment newsletter “潮流 (Trend)” by Tetsuo Inoue, provided by GogoJungle, this was distributed「潮流815 Dow RSI total rising beyond 150%」」for introduction.
Although five indicators that are a sufficient condition for Dow to reach an all-time high have lit up, in the latest “Sign” distributed today, two from the fast-stochastic family are below 90%, the full illumination has faded, but the fact that it lit up remains.
Now, Dow RSI total (RSI 14 days’ 5-day average + 10-day average) bottomed at 63.81% on 5/17, and by Friday’s close it has risen to 155.06%.
This RSI total has accurately read the market waves for several years, so I call it “MVP.” As you can see in Graph 1, exceeding 150% is really rare, and it has not occurred since February 1, more than a year and four months after the 180%+ reached during the late January crash last year.And this value is still rising, and in the next five business days (especially the first four)، as long as it does not fall compared to the previous day, it is expected not to drop.
If so, the possibility of reaching over 180% as circled in red for the last four times is emerging this week.This “RSI total over 180%” has, conversely, signaled future market declines until now (though four times).
There is also a need to anticipate days ahead where the overheated condition could rapidly intensify. While many expect the U.S.-China rapprochement at the G20, even if that happens, we must monitor the trajectory of this figure. (Graph 2 includes the Nikkei average RSI total, which shows a rather restrained rise within reasonable limits.)
“潮流 (Trend)” by Tetsuo Inouequoted.
Keep an eye on the signs that could push the Dow RSI total to exceed 180%, suggesting past market declines in the last four occurrences.(Editorial department)
