On Friday, I pointed out that SPY was developing a short-term bullish channel. I saw that because the smaller rising wedge I had been tracking from June forward was not dumping properly. However, zooming out a little farther, there is actually a wonderful, much larger rising wedge that has been forming from all the way back in May.
I actually really like the look of it. We would expect to see some bearish RSI divergence, which we do, nice and sharp. Tonight's futures will be of great interest to me, to see whether this structure can hold the price action, or whether that local bullish channel might allow prices to push up through the top trend line.
great observation, from Monday's trading psychology , because of manufacturing index data release, it will shock many people and that will probably add fire to the divergence you mentioned.