Relative strength index: Europe

monitoring equity investors' sentiment

Are EU stocks overbought or oversold?

In summary:

• the current RSI reading is 35.9: neutral
• a neutral reading here means that sentiment is fair and the index price momentum is normal and there are no peculiar buying/selling signals

RSI data for Europe is measured on the Stoxx 600 index

IntroThe Relative Strength Index (RSI) is a technical indicator used in financial markets to assess the strength of price movements and identify overbought or oversold conditions. It oscillates between 0 and 100, with readings above 70 generally indicating overbought conditions and readings below 30 suggesting oversold conditions.

Chart guideIn the charts above we report the RSi reading for a number of equity indices, one for Europe (Stoxx 600) and four for US stock markets. We apply stricter limits (20 and 80) to identify specific conditions and to measure non-standard market sentiment by equity investors.

Market implicationsThe RSI here helps us gauge the strength of buying or selling pressure on equity markets and potentially identify trend reversals.

Relative strength index: US

monitoring equity investors' sentiment

Are US stocks overbought or oversold?

Focusing on the S&P 500:

• the current RSI reading is 37.2: neutral
• a neutral reading here means that sentiment is fair and the index price momentum is normal and there are no peculiar buying/selling signals

IntroThe Relative Strength Index (RSI) is a technical indicator used in financial markets to assess the strength of price movements and identify overbought or oversold conditions. It oscillates between 0 and 100, with readings above 70 generally indicating overbought conditions and readings below 30 suggesting oversold conditions.

Chart guideIn the charts above we report the RSi reading for a number of equity indices, one for Europe (Stoxx 600) and four for US stock markets. We apply stricter limits (20 and 80) to identify specific conditions and to measure non-standard market sentiment by equity investors.

Market implicationsThe RSI here helps us gauge the strength of buying or selling pressure on equity markets and potentially identify trend reversals.