SPY is in a Bearish Megaphone Pattern , with all the Key Market Breadth & VOlume Indicators showing a negative Divergence with price. I will go short on a support breakout, aiming for the lower trend line of the Megaphone pattern. A strong weekly close above the current Trendline of the Pattern would negate the Trade ! I'm Bearish for now.
These Indicators are showing negative divergence after 3 years with the Bull run, So They cannot be ignored & Is a big Warning Signal. !!!
Comments
SS96
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divergence - shmyvergence. market does not care about our opinions.
harsha.imperial
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They Don't ! I;m not saying that The Market will do what I say . I simply suggesting there is a good probability of a Correction, given the Negative Divergence in the Very Important Volume & Breadth parameters.
Trading & Analysis is not Predicting the Market or Dictating what will happen . rather it is measuring Probability of something happening !
You don't have to agree with me , but this forum is for people to share their " Opinions " . Agreeing & Disagreeing is at everyone's discretion !
jangseohee
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Agreed! Divergence increase probability only.. not a definite