Nasdaq 100 Index is showing a strikingly Bearish RSI Divergence
on its Weekly Chart going back 5 years, to 2014.
2019 rally has not even challenged the previous RSI Weekly Highs seen previously.
As NDX continues to rally sharply,
levitating back towards the all time high of 7700 in 2018,
one wonder's what is going on below the surface here.
On the RSI Weekly divergence alone,
I would normally immediately open a short position in NDX.
However, NDX rally at this point, looks to be targeting the all time high,
so perhaps a full blown short on NDX may be thus be premature at this time.
Perhaps if NDX does make a new all time high above 7700,
then.... the strikingly bearish RSI Divergence
will mean much more ..then,.. than is does now. Again, a lot remains to be determined.
Trader's should look to be nimble, and trade at opportunities in the NDX, both long/short
until the weight of the total evidence becomes clearer in 2019.
1rst Quarter Earning this month should provide additional clarity, and illumination
o justify, or not the week after week price advance in NDX in 2019.
Summary Perspective :
NDX 100 Continues be Bullish in current chart Interpretation, targeting the all time high
however that is tainted by strikingly Bearish RSI Divergence
which the market right now,.. is simply choosing to ignore.
NDX Last 7611.49
THE_UNWIND
4/11/19
NEW YORK
on its Weekly Chart going back 5 years, to 2014.
2019 rally has not even challenged the previous RSI Weekly Highs seen previously.
As NDX continues to rally sharply,
levitating back towards the all time high of 7700 in 2018,
one wonder's what is going on below the surface here.
On the RSI Weekly divergence alone,
I would normally immediately open a short position in NDX.
However, NDX rally at this point, looks to be targeting the all time high,
so perhaps a full blown short on NDX may be thus be premature at this time.
Perhaps if NDX does make a new all time high above 7700,
then.... the strikingly bearish RSI Divergence
will mean much more ..then,.. than is does now. Again, a lot remains to be determined.
Trader's should look to be nimble, and trade at opportunities in the NDX, both long/short
until the weight of the total evidence becomes clearer in 2019.
1rst Quarter Earning this month should provide additional clarity, and illumination
o justify, or not the week after week price advance in NDX in 2019.
Summary Perspective :
NDX 100 Continues be Bullish in current chart Interpretation, targeting the all time high
however that is tainted by strikingly Bearish RSI Divergence
which the market right now,.. is simply choosing to ignore.
NDX Last 7611.49
THE_UNWIND
4/11/19
NEW YORK