As the Spy made new highs in February it did so on negative divergence. I marked where this happened back in September. The red arrows points out a double top in price action in September. I like to look at the internals of a product to confirm price action. However in September, the RSI was troubling as it did not come no where close to its' previous high in September. The SPY ended up selling off to 135.
I also marked the price action in February with red arrows as well as the RSI. Here The price made a new high, but the RSI did not much like it did in September. Also I drew a line of resistance in MACD and RSI. They both recently moved into this resistance area and has since backed off.
I take these signs as an early warning sign of at least a temporary sell off coming. First to confirm this I would like to see the price in the SPY fall and hold below 151. If the bears can successfully hold the 151 are we can look for a target in the 145-148 range.
Get Daily mid day updates on trade alerts on my blog at: junglestocks.wordpress.com/
I also marked the price action in February with red arrows as well as the RSI. Here The price made a new high, but the RSI did not much like it did in September. Also I drew a line of resistance in MACD and RSI. They both recently moved into this resistance area and has since backed off.
I take these signs as an early warning sign of at least a temporary sell off coming. First to confirm this I would like to see the price in the SPY fall and hold below 151. If the bears can successfully hold the 151 are we can look for a target in the 145-148 range.
Get Daily mid day updates on trade alerts on my blog at: junglestocks.wordpress.com/