markrivest
Short

Momentum and Seasonal Patterns Bearish For Stocks

TVC:NDX   NASDAQ 100
74 3 2
The Nasdaq 100 has been the strongest US stock index - so far it is the last index to hit a 2016 high.
Yet even the strongest index is showing significant monthly bearish divergences.
The monthly RSI has a triple bearish divergence vs. its November 2014 peak.
The monthly MACD line and histogram also have significant bearish divergences.

Seasonally September through early November is bearish for stocks .
The SPX             and DJIA             have been in a narrow trading range since July.
During this sideways activity the number of 52 week lows on the NYSE have been rising.

The US stock market and perhaps most of the global stock market could be just a few days away from a sharp decline.
Watch for a break below SPX             2114, this could trigger a rapid decline to the low made in February.

Mark

tomj2417 PRO
a month ago
Some notable divergence there....interesting times.
Reply
ChartArt
a month ago
I don't disagree that the Nasdaq is very high and could see a decline as showed in charts I posted weeks ago, but when I look at the current divergences I can also see this bullish direction in the chart:

1. Bullish cross of the blue MACD with the orange signal line
2. MACD histogram turned in October above zero, which is bullish
3. Slope of the MACD is going up, which is bullish
4. Slope of the MACD histogram is going up, which is bullish
5. RSI is rising and above the zeroline, which is bullish

snapshot
Reply
markrivest ChartArt
a month ago
Hi Thanks for the information

We could know in just a few days if the NDX breaks to the downside.

Mark
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