MACD Multiple Time Frame Bearish Divergence on SPY
MACD Multiple Time Frame Divergence on SPY
This stock market video covers the SPY ETF and explains the current multiple time frame divergence in the MACD indicator. There are both weekly and daily time frame bearish divergence patterns in SPY which indicate the potential for a significant high occurring at this level.
Additionally there is a minor failed breakout of the March 7th high, and a potential major failed breakout of the January 2014 high if prices continue lower below the 185 level.
Friday displayed a reversal day in SPY with the S&P 500 moving to slight higher highs, but reversing sharply and closing near the lows in a wide range day.
On the balance the technical analysis suggests that stocks are likely in a position to decline from this level, and traders should be in cash or sizing up shorting opportunities.
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