So yesterday I spoke of the positive divergence that was occurring in the intra and daily charts. I also mentioned that the signal in the intra-day chart should point downward and best if it is in the OS condition. We got both today and prices pushed lower as a result. The problem now is that with price pushing lower, we eliminated one positive divergence but still have another still in effect. Therefore, a chance of a reversal or CIT still exists.
So you're probably asking what happens now. Well from experience, I want to see prolonged stay at the OS or bearish range of our indicators. Since the daily positive divergence is in question here, the lower time-frame would be the one to watch for that bearish staying power. The next best thing is to watch for a reset of the signal for a top reducing the risk for a premature short entry. Confirmation is always key.
SEN: Bullish (Down-Trending May 5th)