RSI isn’t a holygrail of markets, No signs of impending crash in Footsie – Market Sniper

Perma bears and Doom sellers are always looking out for reason to call a crash. One such argument making noise is about the daily RSI on the Footsie chart hitting the overbought region (above 70.00) for the first time in three and a half years. This is being sold by many as an advance warning of an impending crash.

Francis Hunt from Market Sniper squashes the fear mongering via his pointed and precise technical arguments. Hunt says the RSI is lagging indicator and being above 70.00 is merely a sign of exhaustion and at the most an indication of a healthy correction.