- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Monday, 8 August 2016

Building Negative Divergence

SPX made a marginal new high this morning and that has somewhat changed the picture from when I was doing the charts below over the weekend. There are now fixed 60min sell signals on all of ES, NQ and TF, and while I'm still favoring a retracement and a bit higher to set up decent sell signals on the RTH 60min charts, there is now a higher risk that won't happen, and that SPX starts the retracement I'm expecting directly from here.

There are now also fixed RSI 14 sell signals on all of the SPX, NDX and RUT 60min and 15min charts apart from the NDX 60min chart so if we see a hard support break then the main retrace may have started.

On the daily chart the bands are now the most compressed they have been in the last twelve months, including just before the mini-crash last August. SPX daily chart:
Short term rising support on SPX is now in the 2173 area, and rising obviously. SPX 60min chart:
I'm still favoring a little higher before the main decline that I'm expecting starts, but it's possible that marginal new high could be the one that was made this morning. Only one way to find out for sure :-)

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