Click on Chart to Enlarge
There is currently a sharp bearish divergence on the 4 hour MACD chart of SPY. This occurred with a failed breakout (so far) of the earlier March highs. This is the first bearish divergence of this scale since late February after which there was a sharp 1 week correction.
The green lines on the chart indicate unfilled gap ups from the uptrend. The most recent unfilled gap up at 152.92 is just under the consolidation lows of the last couple weeks. An undercut of the 3/19/13 low may be a likely minimum target for this pullback, and could offer a first profit target and partial exit if shorting indexes at these levels and hoping to catch a lager decline.
I will review the Commitment of Traders report probably later today with a video update. This will help us keep track of what the large market moving players are doing.
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