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.

Pete