9 Jun 2015 - Intra Day Divergence

We have an Intra Day divergence signalling a "possible reversal".  Liquidation strategy would be on the exit of the signal out of OS range.  A cross by the signal line by the end of the day would have been a re-entry point for a downtrend sell signal.

If the analysis is wrong and the signal crosses up tomorrow that would be our indication to cut our losses.  This strategy fits best with our ST of a downtrend.  Remember that the divergence is an intra-day divergence and it could be prolonged as the higher time frame might still need to put in its own Pos. Divergence.  We should look for a low this week before we assess if this low will be a short-term low or a longer-term low.

MT: DOWN
ST: DOWN
PA: NA

The SPX has now entered the same scenario that happened in Oct. 2014.  Be aware of these signals and clues.  Therefore I would not be long on any speculation until we get a solid confirmation of a CIT.  In Oct. 2014 the same signal brought about a draw down by the SPX from 1960 to 1820 which suggest this is not a good time to bottom feed or buy dips.

 

Note:  Last night I posted a Bearish Warning signal.  This is giving us a clue of a SYNC between this and our ST and MT signals.  These Sync'd signal puts the risk to the downside which is an understatement.  The accelerative possibilities are much more important to watch or plan for.