SPY on the daily chart is/was calling for at minimum a brief overshoot
of it's previous near term high of 134 based on the daily RSI bullish
divergence. That objective has been reached and although we can leak
higher over the coming days eventually the weekly bearish RSI signal
will take over and it is calling for a major primary trend top with a
minimum price move down to 110ish area on the SPY or possibly all the
way back down to the 90ies. I consider the weekly signal to be a high
probability bearish set up even though the 2 peaks that make up the
pattern are spread over a much wider time frame than for example the 07
top was. I consider this to be because of the HFT flash crash that
distorted the RSI time/price relationship (as it relates to divergence
signals)
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