The top chart is a daily chart of the SPY and the bottom chart is a new highs & new lows indicator.
Negative Divergences:
Yellow lines just before a market selloff
Green lines just before a market selloff
Red lines - will this also be just before another selloff ?
If another selloff does materialize from the longest of the three divergences, it may also be the deepest selloff and possibly break the October 2014 bottom. Potentially this will create a megaphone pattern which in itself is very bearish.
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This
has been posted for Educational Purposes Only. Do your own work and
consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
Past performance is not indicative of future results
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