Divergences in the momo indicators. I am thinking a deep pullback to 200 Daily SMA , the red MA on the chart. Nicely lines up with SPY in the previous idea. Either all of these indexes will honor the divergences or none will. What do you think?
SPY set a new ATH today. XLF could only muster a higher high and higher low. Not bad for a bullish move considering how heavy these divergences are. One of two has to happen - either SPY and XLF turn down or they continue their upward journey. Given today's action, I am inclined to upside. Tell you why - we are in an exceptionally bullish environment today. None of the patterns and setups on bear side work anymore. Unless there is a confirmation to the downside, do not bet bear.
I see the same thing. Maybe because the Fed was speaking today that is delaying this correction. Just need to see confirmation. I'm also seeing divergence on XLE. There's quadruple witching this Friday. This could still happen.