Discussion in 'Technical Analysis' started by cashmoney69, Jul 21, 2009.
not looking too good. Market could be at 7800 next month. Hope i'm wrong.
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.
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.
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.
It still applies, it just doesn't mark the top as some might mistakenly believe.
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