Bearish diversion between price and RSI a while back. DIA has been unable to top the ATH since the divergence completed. Price can take a while to correct a divergence between price and RSI, but as a rule, the divergence will correct.
Many draw the bullish divergence on the valleys and a bearish divergence on the peaks.
The Pandemic bottom was 182.10. It seems like we have come a long way down from the high but price has not even hit the 38% mark of the long impulse wave up, and whether or not price hits these levels again remains to be seen. Look down, down and then a little further down and you will see the 38 and the 50% levels marked )o: The .618/62% and .886/89% levels are also marked. I did not realize how far this index had come until I tried to draw the fib levels. It was a stretch to say the least.
There are many possible support levels below and well below price. I got tired of drawing them! Anyway, when one support level is violated, I set an alert for the next level and re-evaluate.
Looks like an ugly top and price has penetrated the neckline slightly today with a bearish, Marubozu candle. At this moment, the top and bottom of the Marubozu is shaven which is very bearish. The neckline is support until it is broken with a confirmed downtrend. Price has broken this neckline before and recovered. Looks like an inverse head and shoulders formed and price came back up.
There is also a descending channel pattern, also known as a “falling channel” or “channel down“. A break out above the upper trendline generates a strong buy signal, while a break down below the lower trendline generates a strong sell signal.
The descending channel pattern is also known as a “falling channel” or “channel down“.
As long as prices remains within the descending channel , the downward trend in price can be expected to continue.
SPY and QQQ appear to be in a channel down. SPY was trading in a megaphone pattern but appears to have settled in to a channel as well. I have not looked at the Russell/IWM in detail as of yet, but just glanced at it and I see a bear flag that is correcting.
No recommendation, except be safe. There will be rallies up a long the way and it can be a good time to sell if you feel the urge. The market is unpredictable and it is a bad idea to try to forecast the future (o: We can only look back, down and all around and make an educated guess.
I am sure the economy is not helping the market right now. But the market has come a long way since the Covid bottom and maybe it is just "that time" )o:
Many draw the bullish divergence on the valleys and a bearish divergence on the peaks.
The Pandemic bottom was 182.10. It seems like we have come a long way down from the high but price has not even hit the 38% mark of the long impulse wave up, and whether or not price hits these levels again remains to be seen. Look down, down and then a little further down and you will see the 38 and the 50% levels marked )o: The .618/62% and .886/89% levels are also marked. I did not realize how far this index had come until I tried to draw the fib levels. It was a stretch to say the least.
There are many possible support levels below and well below price. I got tired of drawing them! Anyway, when one support level is violated, I set an alert for the next level and re-evaluate.
Looks like an ugly top and price has penetrated the neckline slightly today with a bearish, Marubozu candle. At this moment, the top and bottom of the Marubozu is shaven which is very bearish. The neckline is support until it is broken with a confirmed downtrend. Price has broken this neckline before and recovered. Looks like an inverse head and shoulders formed and price came back up.
There is also a descending channel pattern, also known as a “falling channel” or “channel down“. A break out above the upper trendline generates a strong buy signal, while a break down below the lower trendline generates a strong sell signal.
The descending channel pattern is also known as a “falling channel” or “channel down“.
As long as prices remains within the descending channel , the downward trend in price can be expected to continue.
SPY and QQQ appear to be in a channel down. SPY was trading in a megaphone pattern but appears to have settled in to a channel as well. I have not looked at the Russell/IWM in detail as of yet, but just glanced at it and I see a bear flag that is correcting.
No recommendation, except be safe. There will be rallies up a long the way and it can be a good time to sell if you feel the urge. The market is unpredictable and it is a bad idea to try to forecast the future (o: We can only look back, down and all around and make an educated guess.
I am sure the economy is not helping the market right now. But the market has come a long way since the Covid bottom and maybe it is just "that time" )o: