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Strategies & Market Trends : Playing the QQQQ with Terry and friends. -- Ignore unavailable to you. Want to Upgrade?

To: stock2005 who wrote (4773)	5/17/2009 5:00:31 PM
From: Walkingshadow	Respond to of 4814

I don't find RSI to be a very useful indicator. Also, note that RSI was "trying to move up again" in February, when QQQQ was trading at around $28. But the index dropped another 9% or so from there anyway over the subsequent 2 or 3 weeks. That said, the RSI has dropped quite a bit so far, which would support the idea that we will see a bounce as the region of support is approached around $32 and below. Almost all technicals show definite sell signals, even on the weekly charts. It is typical that there is not unanimous consensus among technical indicators at market inflections, but that this often occurs in the middle of trends. Personally, I think the best approach to using technical indicators is to find 3 or 4 that you understand and feel comfortable with. And, never use the technical indicators (or any other indicator) as the sole source of evidence in determining potential impending trend reversals. Terry