Replies to post #341308 on Zeev's Turnips Patch-No Politics (ZEEV)

[cannabis]

Zeev,that NDX rsi reading[16.6] is the lowest ever in VTO history.And lowest by a good deal.

[opnion]

Those 2 times also were a peak to lead to maximum loss in the ndx . If that holds true then we get a bounce off of this signal and then another low print then a bounce leading to a severe correction.

[Joe Stocks]

Zeev, In my opinion the market has changed much in the last few years and therefor a put little thought into past occurances.

In past the market represented the collective psychological sentiment of broad range of players. Now the market has been taken over much by a small set of program traders. I would be weary of past performance indicating likely future results. We have a whole new market here from what we saw in the past before 2002. JMO.

[Public Heel]

Of course, there's always those "low probability events" (crashes). I went back and calculated the 5-day RSI's for the SPX in October 1987 (no NDX back then). The week before the crash, the RSI dropped to a very low 16.66, recovered the next day to 43, then dropped four straight days to 10, before hitting 3.3 on the day of the crash (10/19).