Time periods are in relation to recessions en.wikipedia.org/wiki/List_of_recessions_in_the_United_States
1972 till 1975 RSI goes into over bought followed by a crash below 200 MA and RSI going into over sold. In this case the change in RSI to upward momentum vs downward marked the bottom.
1980 till 1982 RSI goes from over bought to oversold again. This time though RSI hits over sold long before the bottom is in. Actually even before the 200 MA is broken.
1989 till 1990 RSI goes over bought but not over sold and 200 weekly MA is never crossed.
1998 till 2003 RSI goes over bought then goes over sold 3 times before the bottom is put in with the 200 weekly MA being broken again.
2006 till 2009 RSI goes over bought and 200 weekly MA is broken again. With RSI over bought and over sold preceding the top and bottom.
2020 RSI went to over bought and then over sold and 200 weekly MA was crossed. Technically based on some past charts the bottom could be in. If markets could go back up and fundamentals return maybe that narrative could happen. Though without employees working it's a hard to consider increase value. Though also consider between May 11 and May 18th M2 money supply increased 0.5%. If stocks crash again cash may become USD might become valuable again with another attempt at deleveraging. Is the stock market shoots past all time highs without a full work force deployed hyper inflation is a consideration. To me I don't think it's possible to know what will happen next but considering likely scenarios and your personal plan of action could give you an edge over others slow to react.
1972 till 1975 RSI goes into over bought followed by a crash below 200 MA and RSI going into over sold. In this case the change in RSI to upward momentum vs downward marked the bottom.
1980 till 1982 RSI goes from over bought to oversold again. This time though RSI hits over sold long before the bottom is in. Actually even before the 200 MA is broken.
1989 till 1990 RSI goes over bought but not over sold and 200 weekly MA is never crossed.
1998 till 2003 RSI goes over bought then goes over sold 3 times before the bottom is put in with the 200 weekly MA being broken again.
2006 till 2009 RSI goes over bought and 200 weekly MA is broken again. With RSI over bought and over sold preceding the top and bottom.
2020 RSI went to over bought and then over sold and 200 weekly MA was crossed. Technically based on some past charts the bottom could be in. If markets could go back up and fundamentals return maybe that narrative could happen. Though without employees working it's a hard to consider increase value. Though also consider between May 11 and May 18th M2 money supply increased 0.5%. If stocks crash again cash may become USD might become valuable again with another attempt at deleveraging. Is the stock market shoots past all time highs without a full work force deployed hyper inflation is a consideration. To me I don't think it's possible to know what will happen next but considering likely scenarios and your personal plan of action could give you an edge over others slow to react.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.