Monday, May 3, 2010
S&P 500 - Weekly Bearish Divergence
Here is a potentially damaging divergence that had appeared on S&P500. I have no doubt that there could be something similar on Dow and Nasdaq.
I am guessing that a major correction could happen if the index closes below 1150. The fall could meet last low of around 1044. However, as the monthly up-trend is still unbroken and hence I do not think this is an indication to the end of a bull market.
My plan is to conserve resource until that happens (correction completes) or the current bearish divergence is cancelled through a strong spike up of prices.