SPXA150R Daily Chart Negative Divergence

SPXA150R shows nearly 90% of the stocks are above their 150-day MA, a high number that indicates market topping behavior. This signal is monitored on the Turn Signal page on this site.  If price moves above 80%, that indicates a strong rally in progress. Once that occurs, price either drops back under 80% to indicate that the bears are taking the ball, or, price jumps up through 85 to indicate more bullish fun.  The latter occurred three weeks ago to continue the upside orgy.  Once price is above 85%, price either drops through 85% to indicate the bears are taking the ball, or, price moves up through 90% which indicates bullish strength but at the same time signaling that short positions are required in the markets.

Price stumbles through the 85-90 level for the last three weeks unable to choose a side. The red negative divergence will pick for it, and spank price lower. A drop through 85% will indicate that the bears are in business so check this chart each evening. The 8 and 34 MA cross is useful moving forward since it verified that the top was in as the October selloff continued along, and at Thanksgiving verified that the mid-November bottom was sustainable. Price moved under the 8 MA yesterday which is bearish. Watch to see if the SPXA150R rolls over as the chart indicates it should. 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.