Tuesday, December 24, 2013

What is the $DJIA's Relative Strength Saying About its Future Price Direction?

The rising RSI has penetrated its rising trend line that has been in force since 2009.  What is the proverbial bottom-line?  If past trends hold, $DJIA might be heading to 5,800, or decline of at least 64% from its current levels.  (See the following chart.)


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