The relative strength index (Stockcharts.com RSI) is a significant momentum indicator that we’re using to identify overbought (RSI > 70) conditions as well as oversold (RSI < 70) potential buying opportunities.

As we’ve noted, we’re tracking a long-term version of this indicator, using a trailing 12-month RSI in conjunction with 10-year monthly charts. We think that RSI breaks — when RSI has been greater than 70 for a prolonged period and then breaks back below 70, that’s it is a moment worth noting and time for portfolio-centered consideration.

More (specific case studies) to follow …