This is the daily chart following up to a long term weekly RSI divergence on the SPY.
While the peaks of the SPY went up, the RSI went down. the following day was confirmation, then profit!
This may still play out further down to 202 or 200 as potential profit points, or may have completed it's drop so that the SPY and RSI are on the same page (so to speak)...
We have had many pullbacks on the SPY and still it has stuck with it's long term Bull trend. The RSI has been showing fundamentally it is getting weaker internally, and todays pull back could be the start of a change of trend.
As you can see before though - the SPY has had divergence with the RSI now since May 2013, and has still rebounded to stick with it's long...
RSI is building strength underneath the stock and we are hovering around previous resistance at $71. Still need a clear signal upwards to confirm a bullish change. Earnings coming up may influence this also. WAIT to see confirmation of a bullish move.
