NYA NYSE Weekly Chart Rising Wedge Trend Line Failure

The long term rising wedge off the March 2009 bottom has failed over the last couple weeks. Note how price has fallen thru the lower trend line of the rising wedge. The red lines show negative divergence for the February top with MACD and stochastics, but, the RSI and money flow (green circles), did not. This means that price will pull back down from the negative divergence but price will want to come back up for a matching or higher high to satisfy the RSI and money flow. And price did that for the late April early May highs shown by the purple lines. This lined up negative divergence across the board indicating that the topping and rolling over behavior has peaked, and a spank down should occur (purple arrow), and that the NYA is cooked. And the move down does occur in May.

The chart shows all the indicators are weak and bleak now, but price remains elevated, so the downside is preferred moving forward. That said, once an important trend line like the lower blue line is broken, a back kiss is in order, so after this near term selling subsides, price should come back up to the 8500-ish area, then roll over again. Price is now under the 10 and 20 MA's, bearish. Watch to see if the 10 MA crosses down thru the 20 MA, now only 75 points above, which would be bearish. Also watch to see if the RSI and/or stochastics lose the 50% levels, if so, this will reinforce the bearish direction. Projection is down for the weeks and months ahead. The topping and rolling over behavior this year continues. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.