A daily RSI5 and NYMO sell signal fixed on SPX yesterday. I haven’t had enough time to run the performance on these back to the start of 2007 yet, but as there are eleven signals going back to the start of 2012, all in one of the most powerful bull runs in history, that’s a decent sample to use today.
The signals have a target at the 30 level on the daily RSI 5. Of the eleven previous signals eight went directly to target with retracements from high to low of 38, 55, 147, 55, 127, 45, 113 and 87.
The other three signals (all in 2013) reversed at or slightly below the 50 level on the RSI 5, made a marginal new high on continuing negative RSI and NYMO divergence, before turning back down for a larger retracement to a low below the first low. Two of those made it to the 30 level target, and the third made it to 34, just short. The retracements from the signal (first not higher) high to the low were 30, 25, 127. (more…)