The signs of a correction were there... but I was not watching. I have not been a chart hawk this week, so this analysis is in hindsight.
We had VERY clear bearish divergence with overbought RSI on multiple time frames, including the daily. The good news? We have potential hidden bullish divergence forming, but need to see a clear elbow up on RSI to confirm. This would "cancel" the bearish divergence.
Bulls want to see the area around $69,000 hold on the daily and above - that was the previous all time high support.
We had VERY clear bearish divergence with overbought RSI on multiple time frames, including the daily. The good news? We have potential hidden bullish divergence forming, but need to see a clear elbow up on RSI to confirm. This would "cancel" the bearish divergence.
Bulls want to see the area around $69,000 hold on the daily and above - that was the previous all time high support.
scott.melker@texaswestcapital.com