Straits Times Index - Correction Imminent
When Welles Wilder introduced RSI in 1978 in his book "New Concepts in Technical Trading System", he considered divergence the single most indicative characteristic of the indicator. Divergence occurs in overbought or oversold are serious warning that should be heeded. I suspect STI is heading for not just a pull back judging at the degree of divergence spotted!
I am 90% in cash now except with some Swiber that has gotten stuck as a result of the plunge due to placement issue. Will try to get rid of it and stay sidelines.
I am 90% in cash now except with some Swiber that has gotten stuck as a result of the plunge due to placement issue. Will try to get rid of it and stay sidelines.
Labels: Market Direction
posted by Market Wizards @ June 02, 2009
Comments: 6
