SP500 forming big negative RSI divergence.

FX:SPX500   S&P 500 Index
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With everyone leaning long, be careful of this divergence.
RSI and many other technical indicators have become useless in this bull market. Go back and draw resistance lines on RSI in the past few years and see how badly its gone for permabears.
Now, something was fish to me last week when this dumped at the open twice (thurs & fri) after hitting new highs. I think the consolidation will last longer and more money will be made on shorts. Still, I wouldn't be surprised to see bulls push into the mid 1900s as QE still has a lot of friends buying.
truth is no indicator tools are necessary anyway. These markets have been running up like steps anyway. If you up for some intriguing reading check out or perhaps google sam seiden and scope out his free vids. Particularly pay attention to breakout trades. If you look on the big picture S&P was in a great big range for decades and this bull run has become essentially a breakout. Of course there are several takes on playing breakouts one of which is waiting on the return to the breakout zone. The idea being price always comes back to the breakout zone. LOL the question is how much longer can this market run before returning to the breakout zone. LOL
if i may, looks like every major dip on the RSI presented a major buy opportunity. History demonstrates that on indicators such as this that if the particular market is in an uptrend then simply buy the dips on the indicator and vice versa. The bigger the dip the better. Sure what goes up comes down sooner or later but until the action on your indicator changes it makes since to me to just go with it. I mean your chart is perfect. If you bought on the dips of the RSI and sold on the tops you should be looking pretty fat in the bank about now. Wish i had thought of it. LOL
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