Monday, November 18, 2013

Multiple Time Frame MACD Divergence in S&P 500

Multiple Time Frame MACD Divergence in S&P 500 

This stock market video looks at the S&P 500 across multiple time frames and notes a bearish divergence in the MACD at weekly, daily, and 30 min time frames.  This type of multiple time frame MACD bearish divergence can signal significant turning points as happened in bonds in July 2012.

We review a low-low-high time cycle that suggests a possible time symmetry for Nov 19th as a high point.  Also, we look at bollinger bands and the current action relative to the upper bollinger band.

Stock indexes formed bearish reversal candlesticks (bearish engulfing patterns) today with both technical and sentiment divergences present.  I discuss trading tactics to take aggressive short entries in the market and discuss how to quickly reduce risk, while still maintaining the potential for a large gain.

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