How Oversold?

03/03/2009 9:44 am EST


Thomas Aspray

, Professional Trader & Analyst


The monthly chart of the Dow Industrials shows that the RSI3 hit a new low at 6.4 at the end of February. The previous extreme low was 10.2 in September 1974, just a few months before the end of that bear market. An extreme oversold reading, however, does not make a rally imminent, but does suggest we will get one eventually.

Related Articles on STOCKS

Keyword Image
Insider Eyes Kinder Morgan
9 hours ago

Insiders are starting to go radio silent in advance of the release of third-quarter operating result...

Keyword Image
What's Next for GE?
9 hours ago

Shares of industrial conglomerate General Electric (GE) jumped on the announcement that previous Cha...