So what happened to the 2.8-11.19 SELL signal?
Well , it could be that the Algo is off by 3 days, BUT that’s outside of what would normally be considered acceptable TIME disparity given the length of the signal…so , that doesn’t make sense.
It could be that the model I’m looking at is wrong about the 8th-11th being a pivotal TOP/HIGH- * which is probably the case here…
I’m just not seeing anything here that makes sense technically ,other than an overbought MKT that is stretched in Stochastics %K ,RSI,MACD ext.-
So, although the MKT was punched in the stomach yesterday by the trade deal set back, I’m not so sure we can surmise that the current trend is OVER based upon that new bit of News/Information.
As outlined this morning, the Algo #’s as measured by DTE- and calculated by DMP would suggest fairly good support here for the SPX/MKT-
Additionally, I would add that the SPY/QQQ’s are showing a bullish divergence AND the speed at which the MKT is moving is NOT accelerating at a HIGH Rate of change. This is generally not seen as a rush to the exits reversal pattern price movement dynamic , but more of a continuation pullback price movement dynamic.
Based upon the underlying relative strength of the last 2 days, were basically holding in there pretty well (Were only dipped lower by 4 SP handles than yesterday’s LOW and were trading above that level-, at least for now…)
When I look at the sum of the technical parts, my conclusion is that the MKT is likely pulling back within its UP trend structure, and is likely NOT setting up a “reversal” pattern of any significance at this TIME.
Traders/PM’s are advised to temper their downside expectations and assume the MKT’s trend structure is intact for now. We would NOT be loading the boat on the SHORT side here. I wouldn’t be surprised if we saw a late afternoon rip your face off rally… (Of course I’m stuck long and praying for this right now… J)
praying for this right now… J)
QQQ 60 min bullish divergence-