The_Unwind

RSI 15 Min Triangle Divergence / Price at SPX Triple Bottom Low

SPCFD:SPX   S&P 500 Index
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As a trader I use Well's Wilder's RSI as an over riding Indicator.
Simply put, I put it first among equals ABOVE every other indicator
in its Importance in determining future price movement.

Right now, 15 Minute RSI is inside a triangle, or indecision pattern.
Of note, you can see that despite.. the sharp breakdown in price in the S+P
on Friday Dec.7,.. RSI did not configure, or act the same way.

The 15 Minute RSI Low came much earlier this past week.
That is called a DIVERGENCE.
And in this example, it is a Bullish Divergence .

S+P 500 is at a Triple Bottom Low Above 2630, on the 15 Minute Chart.
Next Week, Either PRICE or RSI DIVERGENCE , is going to win out,
and probably win out BIG TIME.

Don't ASSUME you know right now, which direction that is going to be.

If the S+P breaks it's triple bottom low at 2630
PRICE BEING THE DOMINANT FACTOR
then all bets are off as to how low the market could
actually go, in a PANIC situation.

However, if short term Bullish RSI Divergence wins out,
and the dramatic price collapse to conclude the week
triggering the infamous "Death Cross Execution turns out to be an eventual bottom,
then you could see price begin its journey back to the north soon.
The markets are a discounting mechanism.
How much of the this has already been priced in ?

The resolution of this Price/RSI Divergence 15 Minute Pattern
should illuminate almost immediately the markets short term FATE
in trading early next week.

THE_UNWIND
12/8/18
NEW YORK
of paying very close attention to RSI , in ALL TIME FRAMES.

Comments

So we really have NO idea.
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The_Unwind Fractal777
@Fractal777,

React to the market. Be ready. Know your numbers. Take the shot when it presents itself.
The market will take you the rest of the way.
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ULTA broke down, many other US stocks are just running below RSI 50... on both sides of Atlantic. My bet is that we will see a collapse Monday. On top of all Eurostoxx and SSE Composite Index are pretty much down showing a global liquidity issue. How can US stocks keep up if the world crumbles around us? Put on top the political issues we all issue emerging... looks like a perfect storm.
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LoLBeach LoLBeach
Typo fix: Put on top the political issues we all see emerging... looks like a perfect storm.
Reply
what is worrying me is the now highly chaotic correlation of the TLT/bond market and the equity market, usually bonds go up when equities go down and inversely, but now we have had bonds down equities down followed by bonds up and equity up&down, this is becoming very strange, if a situation when bonds AND equities should sustain both a longer down move a the same time it could trigger a spectacular crash ... of everything
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