This is a simple but powerful chart for you to set up and follow. Notes on chart.
Comments
A-shot
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Nice. So the fact that PVT is in the middle of the trading range and tends to move higher hints on new highs should it go outside the last negative divergence resistance line? (i think last 2 red lines are almost one)
CurtisM
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Look at this in isolation as once a particular cycle ends then another starts. In the current situation you would want to see PVT move in sync with SPY/SPX should these move higher. Pushing above the most recent spike high from a couple of weeks ago would be a positive and pushing above the spike high from early March even more so. Pushing above the December/January is probably not necessary for the market to continue higher just as long as PVT stays in sync with the market as it moves higher.
That's the way I'm looking at this.
A-shot
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Thanx for the advice. Well, the only time when it does not move in sync is when it is a negative divergence, and not opposite - i.e. SPY down, and PVT up - this is one is rare. And PVT does go below -30XXXX on rare occasions, and oddly enough in 2013 it dipped in february and april as well. I would not put my money on the fact that it would copy 2013, as it already had 2 negative divergences this year in the same period, so if it went further up last year, i would also assume a possible higher high. I have a prediction that the top is already in May for the markets until autumn. Although that is also just like last years action and after that divergence the markets did go higher.