RASI Report – For August 27, 2019

August 27, 2019 Bob Weir Analyst Articles, Technical Analysis

This week, the RASI came in at 257, which is down from last week, and well under “500”, the point below which indicates negative market expectations.

The Ratio-Adjusted Summation Index, RASI, is a market indicator developed by Tom McClellan of McClellan Financial Publications. A RASI reading that rises to and reaches a specified level (500 and above) can be a signal that a new market up-trend is starting. The +500 level is an important dividing line for the RASI, in terms of giving a go/no-go signal about the existing trend.  Conversely, a move from well above 500 down to and below 500 is a signal that the market is weakening and that it should move lower. This continues to be the case now.RASI chart - 2019-08-27

Conclusion: Currently, the A-D line is downwards trending, with lower highs. The Index broke below this down-trend line in early August and, at about the same time, also beneath the benchmark 500 level, below which denotes Negative market expectations. It seems to have stopped its free-fall, at least for now.

About Bob Weir 3002 Articles
Bob Weir has over 50 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and was its President, CEO, and Managing Director, Research Services until December 2018. Prior to joining eResearch, Bob was at Dominion Bond Rating Service (DBRS).

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