« Negative Divergence On Weekly MACD »

This is an update to the situation on the weekly chart of the S&P-500, which is our current 'Chart In Focus.' (See original posting)

The potential negative divergence on MACD, on the chart of SPX, was first highlighted around nine weeks ago. The sell signal had not completed itself at that point, but with the markets having sold off over the past couple of weeks, a completion is nigh.

Negative divergence sell signal on S&P-500 weekly chart

As you can see, MACD is very close to the level of the failure swing low that was made in mid-February. Once the thin line, drawn in the MACD pane on the chart, has been broken, the negative divergence will be complete and a huge intermediate term sell signal will be generated. If legitimate, the sell signal has the potential of bringing about a net decline (from the Apr. highs) of 200-400 points, in our estimation.

Updates on this and the myriad of other sell signals that have shown up on the charts are provided daily in our members area. So please consider a subscription (you can take a trial, before you commit to an on-going membership, if you like), today.

Sincerely,

Asher Pinto

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