the impicit logic of the rsi calculation, as with so many other technical analysis tools, is that some fundamentals remain constant, so that “comparative stock value” has some intrinsic meaning. it seems extraordinary to me to assume business as usual with all the political, policy, liquidity, foreclosure, solvency, bankruptcy, contractual, agency, accounting and reporting chaos in which the market is trying to function. doesn’t that factor into the price of a stock?

if the rsi goes to 0 because an asteroid hits the planet, you can’t say that stocks are oversold. you can only say that an asteroid hit the planet. surely, something like an asteroid has hit financial markets.