markrivest

SPX and RSI Analysis

SP:SPX   S&P 500 Index
This week I discovered that there could be SPX             resistance at the declining trend line
near prior chart resistance at the SPX             2757 area, illustrated in my prior post
Before the SPX             open on 3/9/18 it appeared the SPX             was headed into this area and I expected a near term peak.

Unfortunately I did not examine the 15 minute RSI which was at its highest point since the most rerecent rally that began on 3/2/18.
I posted in January that when the RSI is at its highest point - that most of the time it is a bullish indicator.
Regardless of time scale stock indices and individual stocks almost always have tops with RSI bearish divergences.

On 8/9/18 as the SPX             rallied into the resistance zone , the 5, 15, 30, and 60 minute RSI all were at their maximum level
from when the rally began on 3/2/18. Please see the boxed area on the 15 minute RSI . Only the 1 minute RSI had a bearish divergence, this signaled what turned out to be a 5 minute SPX             decline prior to a move well above SPX             2757.

For a larger move down there would need to be bearish divergences on RSI reading above the 1 minute time scale.
Note the prior SPX             near term peaks on the 15 minute chart and there corresponding RSI bearish divergences.

The RSI is perhaps the most predictive momentum oscillator, and needs to be examined on all time scales.

Mark






Excellent observation's on RSI, Mr.Rivest. Thank you.
It cut's across all markets, and it's a very important divergence indicator that should be used in all markets/ time frames,
to confirm price

Note this past week, The Nasdaq Composite ( $COMPQ ) has made new historic all time highs on 3/9/18,
yet the Daily RSI at 52, is nowhere near the 80+ reading it had for the prior historic highs in Jan and Feb.2018

Major Non-Confirmation/ Divergence on the ($COMPQ) !

THE_UNWIND
Reply
markrivest The_Unwind
@The_Unwind,
Hi thanks for the comment.
Also your correct about the Nasdaq. Not only does it have a RSI bearish non confirmation, this
index so far in the US stock Market is only confirmed by the NDX and XLF - Tech sector - ETF.

Mark
Reply
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