The last time the indicator dropped from above 80 to under 80 was in May 2011 and when this turn occurred, the SPX fell from 1350 to 1250, 100 handles. The indicator has popped above 80 now with the SPX at 1327 (same neighborhood as May 2011). Focusing on the chart above, note the rising blue wedge, and the overbot conditions for both the stochastics and the RSI, these indications are market bearish. The blue lines show the negative divergence in place now as well, across all indicators; higher high in price but all the indicators are the same or lower. This indicates that a spank down in the broad markets is in order.
Note the red boxes that show price above the 10 MA, above the 20 MA above the 50 MA. This posture is the peak of bullishness which occurs for any chart. Notice that this can continue for a while, however, since this bullish posture has existed for the last month. Watch to see if price stabs down thru the 10 MA (now at 75.86 moving up); that should get the downside rolling along strongly. The November arrow resulted in a move from SPX 1270 to 1160, a dump of over 110 handles; the December red arrow from SPX 1270 to 1210, a dump of 60 points.
Stay alert with Keystone's turn signals moving forward. Market bears want to see the SPXA150R collapse under 80 and/or the SPX:VIX ratio lose 68. Bulls want to maintain their advantage keeping SPXA150R above 80 and SPX:VIX above 68. Projection is for both levels to fail in the days ahead ushering in broad market selling. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
i haven't heard you mention this in a while. but i notice the weekly RSI and STOC are both setting up for lower highs. MACD , however, is a higher high. the price for spxa50r just made a lower high than the nov number. do you believe there is any significance to this? thanks! and i learn more from your blog than all the others combined!
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