Larry,
Oversold? Don't you mean overbought? Friday 8 day CCI spiked to +304, Monday it was +172, and today fell below +100 to +59---a short-term sell signal. The 8 day RSI peaked at 85 on Friday---way overbought, and fell to 74 Monday, then down through 70 to 62 today--another short term sell signal for traders.
The Stochastic of RSI--8 day, 21 day and 34 day all peaked yesterday and gave a sell signal today. For others, bear in mind these are just short-term signals reflecting reaction to an extreme overbought status.
Actually, any broker sitting in front of a Bloomberg terminal and who can connect the dots would have seen the very symmetrical downtrend line connecting peaks on 8/6/97, 11/11/97, 2/11/98 and 4/17/98 and advised traders to sell Friday or Monday. Keep in mind, however, trend lines are made to be broken---someday it will be broken to the upside. If you keep extending a downtrend line into the future, eventually it hits zero. The LOWER trend line parallel to the one mentioned above would hit zero on 7/9/98--something that obviously will not happen in spite of Dave A's(qwerty..) fantasies. I would hazard a guess that the next time TTRIF breaks the upper trend line it will not fall back.
I'll post some Elliott wave thoughts on Yahoo.
Regards,
Gary |
