Market_Psychology
Short

Bear divergence, declining volume, what could go wrong.

AMEX:SPY   SPDR S&P 500
325 2 10
Title says it all. Given the declining volume and bear divergence I do not think this rally will continue much further
Please be aware that you are using two momentum indicators (RSI and DPMO) which basically show the same type of information. The upside of momentum is that momentum is leading the price. But the issue with momentum is that it is without direction. When the market goes up in a consecutive way very fast, then the momentum is going down (the change between higher and higher prices on a straight line is going down), while the price is going up and up.

Same problem I had with my momentum analysis here (using the Coppock Curve):


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Thanks for the feedback. I used to use MACD as well to help even it out. Perhaps I should bring that one back
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