Bear Trap or Bull Run?-SPX Update

http://analyzecapital.blogspot.com/2010/09/bear-trap-or-bull-run-spx-update.html

Interesting as always. I'm sure that even hidden in his cave, Osama watches CNBC.
At the beginning of this week, my sentiment is that ugly news were so anticipated and discounted that the NFP could only be a positive surprise. After yesterday's rally, the story may be different... We'll see on Friday.

Regarding the analysis using the RSI, I've always used the indicator as a kind of speedometer and particularly i'm interested in overbought and oversold states (I may buy the overbought and sell the oversold and not the opposite) but have never looked at its value in between (basically the indicator will tell the same stories as the candles). Could you clarify how you include it in your analysis ? Thanks