Dow Average's Latest Rally Triggers an Overbought Signal: Chart

Dow Average's Latest Rally Triggers an Overbought Signal: Chart

(Bloomberg) -- The Dow Jones Industrial Average’s rally to all-time highs might be running into resistance. The benchmark’s 14-day relative strength index surpassed 70 on Wednesday, the level that indicates an overbought state. Despite the technical warning, the blue chips might still have room to run. “Large caps look poised to regain some relative position to small caps, as they’ve underperformed for most of 2018,” said Bloomberg Intelligence equity analyst Peter Chung.

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