@Marbit -- it was my understanding that RSI and Stochi RSI indicators are relative to what has previously occurred (their time frame for want of a better phrase), so I think what Windjc is saying is that a sudden rise within the 'environment' of a subdued bear market is always going to say 'oversold' to begin with. Eventually, that indicator will recalibrate to reflect the circumstances of the improving market.
Yes hidden divergences are partly a result of this "environment" but it is a break of these divergences that could show a strong confirmation for trend reversal. Inability to break them is the very reason to look for hidden divergences -- to see if trend stays intact. so we will see if we can break 550 level and break that last local divergence
However more than anything I am referring to the difference between a $300 move and a $50 move, when both cause the same point increase in RSI (or other momentum indicators). This is not affected by previous price action