Too Much Bubble Love—Overbought Readings At Unprecedented Extremes

A weekly chart of the DJIA as of Friday last week. To be perfectly honest, we are actually not 100% sure if a weekly RSI exceeding 92 is entirely “unprecedented”, although we strongly suspect it is. What we do know for certain is that it has not happened in at least 45 years. As noted in the insert, this manic RSI reading has coincided with DSI readings (daily sentiment index of futures traders) on stock index futures that were the exact opposite of the extreme DSI readings recorded at the low in March of 2009.