For those of you who have inquired, the "Yi" is my own proprietary overbought/oversold indicator. A +10 reading generally indicates we are overbought in the overall market, and -4 or a -5 reading is telling us the market is a bit oversold. The "zero line" in between the plus and minus readings will sometimes act as an area of support or resistance, so I tend to keep an eye on that level also. A reading of +20 is extremely overbought, and a -10 indicates the market is extremely oversold.
Wednesday, December 12, 2012
The market getting overdue for a correction again.
The $OEX index is now up against the 65 day moving average here, so the market is moderately overbought and may be due for another correction fairly soon.
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