Friday, April 17, 2015

Bearish Divergences Abounding in the Short Term

As of yesterday's close in the SPY and DIA there are many short term bearish divergences suggesting a pullback is close at hand.  Notably...

  • Daily McClellan Oscillator
  • Hourly NYSE TICK index
  • Hourly MACD
  • Hourly Money Flow Index
  • Daily TRIN
This morning a gap down is indicated which would break the hourly chart uptrend lines of the recent bearish ABC pattern set-up I have highlighted.  Given the price logic and the divergences, this gap down may be a sign that the pattern is playing out as expected with a likely move back down to the March lows or lower.


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