Probably the biggest RSI divergence in history.
The yellow chart represents the 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity.
Taking into account the brutal divergence and the inverse yields to happen, it must be assumed that the price will suffer an extreme fall in the coming months.
a. A small dip was posted, but buyers emerged and follow through bullish momentum
b. Trading is close to the psychological level of 1300 forming a double top on the fib 0.786
Long term bias looking to buy dips and the short term bias indicating selling interest we are faced with mixed signals
c. The failure to break green / yellow line, formed a bullish candle...
Today, the market denied to break the KEY resistance. Usually, Friday will be intraday volatile with not much effect before weekend closing. Market participants won't make big dicisions until G20 ends (1.December). I see no sentiment for a upward rally yet. However, there is no sellof trigger for the weekend aswell. It is a 50/50 tomorrow with no clear signal from...
1. If SPX breaks the downward intermediate trend above 0.618, we will probably see a Head and Shoulders formation. This would break the 0.382 retracement and crossing the Ichimoku cloud at the same time. Hence, trigger a rally.
2. Otherwise, we will see a Death Cross and a continuation of the sell off towards the support. A break of the intermediate trend below...