Shanghai Stocks Have Biggest One-Day Loss in Five Years

The video discusses the Shanghai Composite's significant market performance, driven by margin trading and debt, leading to skepticism. China's new rules on collateral usage impacted market liquidity, causing a notable market drop. Technical analysis indicates a bearish signal, with the US market and ETFs reacting to these changes. The market reached overbought levels not seen since 1994, extending the sell-off.

Explain the concept of an 'outside day reversal' as described in the analysis.

What does the 14-day RSI indicate about the market conditions mentioned in the text?