major market divergence w/ double top

Discussion in 'Technical Analysis' started by cashmoney69, Jul 21, 2009.

  1. not looking too good. Market could be at 7800 next month. Hope i'm wrong.
  2. Your example is nice but there's a slight problem - it ended in mid-June. Unless I'm totally mistaken, that divergence no longer applies.
  3. Bingo, especially b/c there was a positive divergence rally at the conclusion of the multi-month negative divergence. It played out, and things have been reset.
  4. the double top and the fact stochastics are over-bought IS still in play. IMO its only a short time from now till the market tests 8400 at least.

    but im no noob, I understand price is the best indicator, so here are some resistance levels i think may be important.
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  5. It still applies, it just doesn't mark the top as some might mistakenly believe.