What is the underlying strength?

Now that the market has gone up considerably from significant lows of March, people are opining on the quality of this advance. While the jury is still out, lets look at strength of the momentum indicator itself!

Here we have $NDX daily chart and the RSI (Relative Strength Index created by Welles Wilder which measures the price momentum relative to itself). Further we have 10 period SMA (Simple Moving Average) plotted on the price as well as RSI.

Note (green arrow) that 10 sma is about to cross down below 20 sma (bearish cross over) on the RSI but the same (10 sma) is still up at the price. It is a caution light. Yellow signal; something is going to happen; watch where you are going.

It is good to be back!