Dow Jones Market Is Overbought As RSI Heads Towards 80, 27-01-2011

On Wall Street Recap, the Dow Jones ends flat after surpassing 12k level briefly. The Dow rose to 12020 (+43 points) following a more pro-business State of the Union address by Obama and a strong 18% jump in December new home sales to 329k (consensus: 300k). However, profit taking activities ahead of the FOMC statement reduced the gains to only 3 points at 11985.

Fed said consumer spending picked up late in December, but growth “has been insufficient to bring about a significant improvement in labor market conditions”. It added that housing is “depressed,” employers are “reluctant,” and consumers are constrained by weak income growth, falling home prices and tight credit.

Dow Jones market is overbought as RSI heads towards 80



Souurce: StockCharts.com