This week SPY temporarily fell below but managed to close above it.The (50) is still above +100 and EFI well above mid point. The EFI(21) and (50) above/below mid point have been a good indication of both long term and short term trend shift on weekly frame. I have shown on this chart how you can use & EFI to spot bottoms.When you have extreme readings in both and EFI with significant divergence more often then not it's an indication of a bottom or top.
@ james.manning.58, first of all before I look for divergences I always looks at candle stick price action first. SPY candle stick price action is still bullish, we finished the week with a bullish 3 white soldiers pattern. If candle stick reversal patterns start to emerge then I look for divergences. As of this week we do have a minor divergences in CCI & EFI but NO major divergences.The first sign of a breakdown will most likely be the EFI below mid-point & CCI below +100. Take a look at this monthly chart on divergences