RSI declining – final warning sign

This is a very expensive and overbought market which few participants believe can decline meaningfully. That alone is dangerous, but now we see signs of technical exhaustion, such as the downtrend in RSI on the daily chart (credit futures.tradingcharts.com):

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One thought on “RSI declining – final warning sign

  1. Wishing you a very Happy New Year, Mike. Re the stock market, do you think there is still any point in trying to identify tops? The technicals are indeed dangerous and the fundamentals are lousy. But the Fed keeps printing money, and stocks keep going up — relentlessly; parabolically. For virtually all of 2013, with hardly even a meaningful correction along the way. The market will probably collapse eventually, but how do we know that it won’t go much higher first, like the Nasdaq in late 1999 / early 2000? Any thoughts would be much appreciated.

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