Bearish Divergence on SPY

Click on Chart to Enlarge

Both the last two pushes to new rally highs have not pushed the MACD to higher highs on the hourly chart in SPY. This sets up what could be a powerful bearish divergence. I believe it will most likely lead to a sharp pull back in the days ahead. There are actually several other reasons I believe suggest that we will see a pullback.

There is the monthly jobs report tomorrow. That could lead to some type of exhaustion gap up, or a major downer. So I'm going to post a trade here, because in either case, I think we are topping here for at least a multi day decline.


New Trade:

Buy SPXU today with a market order. Current price is 29.70 and is the blog entry price.