SP 500 Weekly MACD Divergence

Discussion in 'Technical Analysis' started by myminitrading, Apr 20, 2007.

  1. Well here it is we have not seen one like this since 2005. We may be setting up for a major decline, their is alot of enthusiasm around the world, be on the look out traders.
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  2. Looks like there have been several such divergences over the past couple of years, none of which look very meaningful in retrospect.
  3. Dow as well as all indexes showing MACD weekly divergence, the one in 2005 produced a 1000 point drop in 6 weeks.

    I am not saying we may not go higher, what I am saying is the fundamentals are now in place to support a decline, weaker earnings.

    Just be aware! I would still play it from the long side. I am afraid one of these dips may not bounce back so quickly, and if your in a futures contract that will expire it may be a little unnerving.

    So protect yourself, from disaster.
  4. I would love to see the futures gap open Sunday night power higher till Wednesday, then sell off hard on massive volume, that would be an ideal setup for a short.
  5. mini thanks for throwing me a "hope rope" ...jake
  6. freetree