Does anyone use this indicator. I really don't get into divergence type stuff so I use it much like RSI, just looking for extreme overbought/Oversold. On todays close SPX, DIA, and the Naz 100 all had closing readings of 78. Naz Comp was 79. In 3 years of data there has not been a reading this high. Yes we've had a 3 year bear so "overbought" readings shouldn't be so common. BUT in these past three years except for the 9/11 aftermath, (and if you remember the mkt. had broken for a few days prior to 9/11 as well), the Ultimate has never traded below 22. Meaning that on the 3 year break it never got as low as we are now correspondingly high. any thoughts? Anyone with older than 3 year data on this?
My guess is the people who short stocks now are the same ones who went long technology stocks in late 2000.