Easy come, Easy go. The RSI "buy" signal shown last time was promptly negated by the development of a "negative reversal" on Friday.Thursday was not a very bullish day - volume and price movement were lower than Wednesday, and the "potential" negative reversal was in place. As shown in the chart, the RSI closed at a value higher than that of July 30 even though the closing price of the cash s&p500 was lower. The reversal was confirmed on Friday.
This cancels the previous buy signal. Now, even though the technical indicators are setting up to issue another "buy", we have to wait for that to happen. Buy signal or not, I will not go long -- my methodology will not allow me to go against the "larger" trend which is still firmly down.
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