It's a magnificent battle. The last 4 trading days bulls have managed to briefly push price above the high from May, only to be beaten back and see the day closing just a few pips below. From a technical perspective there are a few signs that the bulls are wearing out, including bearish divergence and a yet to be confirmed double top (see chart)
For now the...
If you are unsure what direction equities are heading then trade indices in pairs. Right now the DAX has retreated a bit and is now testing previous resistance from before the May 26 breakout, whereas the S&P is still challenging new highs. Eventually one can be expected to catch up with the other.
Buy the DAX and sell equal value of the S&P and be ready to hold...
Simple stuff but notice how each low in RSI confirmed by subsequent MACD cross over, signals a rally.
Has happend 9 times in the last two years, including two slightly premature signals that still would have yielded a positive trade.
Now MACD appears to be ready to cross over following the recent RSI low. Notwithstanding ECB tomorrow will history repeat?