6 replies to this topic

[eminimee]

Let's see if any divergence shows up....OEX made a new high Friday..spx very close.

http://stockcharts.com/c-sc/sc?s=$NYA&p=D&yr=0&mn=11&dy=21&i=p33348860583&a=109519309&r=9304.png

[thespookyone]

Teaparty-"so far" my simple take, without reading other things in, would be-backtest. Although the wick would have gone through the lower line of your "wedge" on your previous OEX charts. the body settled tucked in, right underneath,no? Interesting times. Spooky

[fib_1618]

but would like to be bearish

Why would you want to be anything but neutral and trade off what the market gives you to work with?

Fib

[eminimee]

Fib...I am....but for the sake of addressing the possible divergence developing in the chart I posted....I chose to use that title.

[borland]

Teaparty, Besides the $NYAD fight with resistance, your chart is quite bullish. - Rising wedge is bullish; not to be confused with failure of rising wedge support line which is bearish. - Both RSI and MACD rising out of oversold (bullish). What's interesting is how the RSI has just painted a double bottom while the MACD is missing that. Comparing the similar Feb/Mar 07 dip, where the RSI fought with resistance, implies we could see another pullback before heading higher. But the higher lows of both RSI and MACD now over that of Mar 07, shows the uptrend is stronger now. So I say we go higher near term, but may get a pullback short term.

[fib_1618]

Fib...I am....but for the sake of addressing the possible divergence developing in the chart I posted....I chose to use that title.

Understood.

But keep in mind that until we see some breakdown in the overall direction of the NYAD line itself, the very momentum generated by this same money flow line can take many months before we see the price pattern itself terminate off of this same energy.

A good analogy...the A/D line is the wood that feeds the price fire...you can stop feeding the fire, but the warmth created by what has already been added can last many hours before extinguishing completely.

Fib

[eminimee]

or to put it another way Fib......how long does it take to stop the Queen Mary?