Typically a broken monthly chart needs 34 months before it can truly breakout again and then we need to look at the breakdown levels
as such I am very suspect that this will blast up and away, although it can remain elevated and consolidate
for weeks to months before any trend is established as per any monthly chart.
Long term charts show previous support and breaks to avoid chasing, even better, all data long term, this broke fast as the weekly slowly rolled over but we can see the -ve divergence on the daily as recent highs were attempted while the RSI failed at 61.8 and the hourly at 50, both declining, if not in on the short before the break, watch your entry as potential...
As $VIX is higher, we can use smaller time frames for more definitive moves, +ve divergence is needed for the actual low,
meaning lower prices with higher RSI, usually we see a break of RSI 30.9 then a move up in the RSI past 30.9,
as it is retested and bounce of RSI 30.9 the actual low is formed, the opposite at the high.
In any market, weekly RSI needs to hold above RSI 50 to be
in an up trend... also, on the daily, RSI 50 can be tested and
a strong market bounces at RSI 50 on the daily as has been seen
in the indices for a while until this past week.
No surprise to see SPX, NASDAQ and the DOW all stop about RSI 50
on friday on their daily charts.
The yellow RSI line looks to be test in the coming days or weeks,
has been in play since 2011 and is a big big deal if it is broken to the
down side as the whole game will be in for a major change.
Still look to see it challenged around 260-270 area after
an attempt to recapture RSI 69.1 next week and a failure,
may go along with the daily chart rejected at RSI...
-ve divergence is building on the daily, i would look to see the weekly fight
to stay above RSI 69.1 then fail as the daily is rejected at RSI 68.1 or 69.1.
Bulls want to see the weekly hold above RSI 69.1 on ave the daily chart correct
which is on the table.
As the new month starts always check the monthly chart, one months rest now for
confirmation in momentum needed to take out closing high 13,863.13
RSI needs to recapture 69.1 or this isn't going anywhere
The daily has lost RSI>69.1, always a mover in prices as each time we cross a Fib# in the
RSI, we see a major move in prices, confirmation of -ve divergence is still needed for a sell.
With > two weeks above RSI 69.1 on the daily, we usually see an attempt at a new high
to follow, we shall see....