Fed RSI Indicator

Ben Emons

By Farther

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In technical analysis, “relative strength” refers to short—and long-term momentum differences that measure the oscillation in the price of a security. The RSI index is set at a threshold of 70 for “overbought,” which means the price of a security is overshooting to the upside. Conversely, the downside is at 30, which is when a security may be “oversold.”

Markets more than often remain oversold or overbought for more extended periods before a reversal by swing traders, momentum-driven funds, and commodity technical advisors (“CTAs”) push the market in a different direction.

The Federal Reserve and other central banks gained significant influence over the markets’ momentum, and Fed communication affects RSI indicators. FedWatch created the Fed RSI Indicator based on the Fed sentiment and news index.

Ben Emons

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Managing Director

With nearly three decades of experience in portfolio management and investment strategy, Ben brings a unique combination of an institutional perspective with a personal touch to each of his clients. He enjoys working closely with high-net-worth individuals, family offices, and institutions to create thoughtful, research-driven investment strategies.In 2020, Ben founded FedWatch Advisors: a quantitative investment firm that translates Federal Reserve communications into real-time, actionable signals using large language models. He previously served as Managing Director of Global Macro Strategy at Medley Global Advisors, where he regularly engaged with Federal Reserve officials and staff on policy and market trends.Earlier in his career, Ben held portfolio management and strategy roles at PIMCO, Nuveen Investments, NewEdge Wealth, and Intellectus Partners. His work spans systematic investing, macroeconomic analysis, and global asset allocation.Ben holds an MBA from the University of Southern California’s Marshall School of Business and a master’s degree in international finance from the University of Amsterdam. He is a frequent contributor on market insights across CNBC, Bloomberg, CNN, Schwab Network, ICE, NYSE, and RTHK radio.

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