The Sotheby's Indicator: Getting Closer To Predicting A Crash
According to the notes – a signal is given when:
1) The RSI reaches an overbought level (bottom pane – been there and now heading south)
2) The MACD closes below the Green signal line (middle pane – almost there)
3) The monthly close of the stock price is below its 12 month moving average (almost there – it’ll have to rally just under 10% from here to make it back above the MA by the end of June)
Comments
According to the notes – a signal is given when:
1) The RSI reaches an overbought level (bottom pane – been there and now heading south)
2) The MACD closes below the Green signal line (middle pane – almost there)
3) The monthly close of the stock price is below its 12 month moving average (almost there – it’ll have to rally just under 10% from here to make it back above the MA by the end of June)