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Dow Jones corrects critically overbought position

Well, I did repeatedly warn that the Dow Jones was reaching critically overbought levels and that delivered a move to around 90 in the 14 day RSI (Relative Strength Index). Previously I had stated that eventually a correction would come and it sure did so yesterday. However, there was no real catalyst for the move, which was against expectations here. Irrespective of that, the Dow fell by 568 points from the top to the bottom of the range yesterday. Prior to that, the index had reopened lower, at 37,520, but risen to set a new all time record high, at 37,641. The fall that followed after the European close saw the index slide to a low at 37,073 and just like the Nasdaq 100, it closed pretty much on that low, ending the session at 37,082, with a loss of 475 points on the day. What this has done, is shunt  and correct the 14 day RSI down to 71, as of the close. The Dow Jones futures have bounced somewhat since then and right now the index is set to open higher later on, but as with the Nasdaq 100, it remains to be seen if the slide yesterday will be fully reversed, or not. The Dow Jones is currently set to reopen at around 37,220

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