This week I discovered that there could be SPX resistance at the declining trend line
near prior chart resistance at the SPX 2757 area, illustrated in my prior post
Before the SPX open on 3/9/18 it appeared the SPX was headed into this area and I expected a near term peak.
Unfortunately I did not examine the 15 minute RSI which was at its highest point since the most rerecent rally that began on 3/2/18.
I posted in January that when the RSI is at its highest point - that most of the time it is a bullish indicator.
Regardless of time scale stock indices and individual stocks almost always have tops with RSI bearish divergences.
On 8/9/18 as the SPX rallied into the resistance zone, the 5, 15, 30, and 60 minute RSI all were at their maximum level
from when the rally began on 3/2/18. Please see the boxed area on the 15 minute RSI. Only the 1 minute RSI had a bearish divergence, this signaled what turned out to be a 5 minute SPX decline prior to a move well above SPX 2757.
For a larger move down there would need to be bearish divergences on RSI reading above the 1 minute time scale.
Note the prior SPX near term peaks on the 15 minute chart and there corresponding RSI bearish divergences.
The RSI is perhaps the most predictive momentum oscillator, and needs to be examined on all time scales.
Mark
near prior chart resistance at the SPX 2757 area, illustrated in my prior post
Before the SPX open on 3/9/18 it appeared the SPX was headed into this area and I expected a near term peak.
Unfortunately I did not examine the 15 minute RSI which was at its highest point since the most rerecent rally that began on 3/2/18.
I posted in January that when the RSI is at its highest point - that most of the time it is a bullish indicator.
Regardless of time scale stock indices and individual stocks almost always have tops with RSI bearish divergences.
On 8/9/18 as the SPX rallied into the resistance zone, the 5, 15, 30, and 60 minute RSI all were at their maximum level
from when the rally began on 3/2/18. Please see the boxed area on the 15 minute RSI. Only the 1 minute RSI had a bearish divergence, this signaled what turned out to be a 5 minute SPX decline prior to a move well above SPX 2757.
For a larger move down there would need to be bearish divergences on RSI reading above the 1 minute time scale.
Note the prior SPX near term peaks on the 15 minute chart and there corresponding RSI bearish divergences.
The RSI is perhaps the most predictive momentum oscillator, and needs to be examined on all time scales.
Mark