Pay attention to the % Diff between Price and WMA (bottom indicator) - Every TOP in price shows a very nice divergence on % Diff, 1st the green line (WMA 10) drops followed by red line (WMA 40).
If history is going to repeat itself than we shall see a slight dip followed by another rally taking out today's high (marginally) in another 3-4 months sucking in more people or creating a BULL trap, while this is happening we shall see divergence on "% diff between Price and WMA" which will mark the start of massive BEAR market OR simply a solid correction followed by a massive start of BULL market similar to one followed after 1983. In either case, we shall see a solid drop....
fxtrader66
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Good observation. Price stopped right at the trendline on a log chart!
paulyberndt
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We need that chop sideways action for a few months like we did in 2008 and 2000 but your right this is setting up nicely for a pullback or correction. XLB and XLI remain under heavy accumulation yet not indicating a turn just yet. thanks for the observation
KLang
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What scale are you using? It's already broken out on my chart
Technician
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This a logarithmic monthly chart
KLang
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So is mine and it's clearly broken out here - odd they don't agree
KLang
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Actually, I stand corrected, mine is arithmetic scale and shows b/o, but I changed it to log and it still shows b/o
LetsBeMillionaire
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this is a monthly chart so we really need to wait to get the u-turn confirmation but this is really a good catch.
Technician
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Sure, this is only a warning, still need plenty of confirmation to signal a short
1999-2013:
Pay attention to the % Diff between Price and WMA (bottom indicator) - Every TOP in price shows a very nice divergence on % Diff, 1st the green line (WMA 10) drops followed by red line (WMA 40).
If history is going to repeat itself than we shall see a slight dip followed by another rally taking out today's high (marginally) in another 3-4 months sucking in more people or creating a BULL trap, while this is happening we shall see divergence on "% diff between Price and WMA" which will mark the start of massive BEAR market OR simply a solid correction followed by a massive start of BULL market similar to one followed after 1983. In either case, we shall see a solid drop....