Market update 2/10/20

TVC:SPX   S&P 500 Index
Although the Bulls are still in control and we are on offense, the chart of the S&P 500 Index shows some potential weakness and indicates that a possible correction could be just around the corner.
The first area is in the Moving Average Convergence Divergence ( MACD ). We see the price of the S&P 500 Index has reached a new high, but the MACD lines are lower than they were just 2 to 3 weeks ago. That means that the MACD , which is a momentum indicator , did not validate the new highs.
The second area where we see a negative divergence is in the Relative Strength Index ( RSI ). Both of these indicators could be signaling something. This is on a daily chart , which is not as strong as a negative divergence on a weekly chart, but if the negative divergence plays out we could be entering a correction in the markets again. Perhaps that is why so many bond charts showed up on our filters and scans this weekend.


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