SPX Bearish Divergence on the Daily
You hear that? Shhhh quiet, it's the sound of RSI is trying to tell us something. What is it trying to saying though?
As you can see on my chart, which is admittedly not as colorful as some others on TradingView, the green uptrend line represents overhead resistance which has been respected since 2018.
If we draw a similar line on the RSI we notice what is called "bearish divergence."
Bearish Divergence in the RSI is characterized by a negative relationship between RSI and Price. Meaning that when Price is going up, RSI is going down.
What does this mean for the market and the people participating? It means that investors are becoming less and less convinced of continued rallies.
Less people, or rather volume, are entering into these rallies compared to 2018.
In my view, bearish divergence has always been a great predictor of future occurrence.
Short Term=Neutral
Long Term=Bearish
As you can see on my chart, which is admittedly not as colorful as some others on TradingView, the green uptrend line represents overhead resistance which has been respected since 2018.
If we draw a similar line on the RSI we notice what is called "bearish divergence."
Bearish Divergence in the RSI is characterized by a negative relationship between RSI and Price. Meaning that when Price is going up, RSI is going down.
What does this mean for the market and the people participating? It means that investors are becoming less and less convinced of continued rallies.
Less people, or rather volume, are entering into these rallies compared to 2018.
In my view, bearish divergence has always been a great predictor of future occurrence.
Short Term=Neutral
Long Term=Bearish
Feragatname
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