Silver has trended down since early October, and only today has Gold shown a downward bias and could start the trend of equities down. People believe that Both Precious metals and equities relate to each other, but actually for the most parts they dont. Yes they did make a rally this past few months along with the indexes but notice they did not make a new high, also take note that precious metals bottomed around May while the Index bottomed in June.
A Longer-term Divergence has been occuring on the Dow Jones Index since Late 2009 and will eventually give. Why? Notice that Each divergence is made with smaller and smaller wedges. This is not characteristic of a Bullish Momentum.
its starting to get dicey, divergences fully in on my technical stuff i follow. I wonder if we go down real quick and then back up. By then the shorts will be exhausted and they will give up shorting, right when its gets good...IWM looks worse. THe ratio between spx:rut looks very bearish to me. Its direction of heading up is not bullish. BUt now that i write this, the IWM will run. LOL.
ReplyDeleteJust keep in mind at all times what time-frame you want to follow and base all your analysis on that time-frame rather than analyzing all time frames which all have different running time.
ReplyDeleteIf your main time-frame is bearish or appears to becoming bearish.. confirm it with the following smaller time frame to see where the momentum is that could manipulate the main time frame from either continuing its trend or force it to turn.
ReplyDeleteFor example.. The weekly SPX Stochastics is down-trending (main trend). Confirm with Daily Time frame which gives us a up-Trending Stochastics which might force the Weekly Bearish Stoch. to turn up. Therefore we must let the daily decide the weekly time frames Fate. You can go down to the 60min to see what the Daily time frames fate aswell if youd like to go micro.
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