- Hour chart of SPY with MACD showing positive divergence.
- Divergence has been there for quite sometime now, But price is not showing any major effects.
- May be one more round of selling is left before the big reversal take place.
- DOW JONES TREND UPDATE
June 15, 2011
- Dow Jones hour chart with 100 Hour moving average.
- Price has been trending down below this moving average since may with just one failed attempt to change the trend.
- Yesterdays up move barely came close to this moving average and already futures hinting a gap down opening. So price should close and sustain above this moving average for changing the short term trend.
CHART FOR BULLS
CHART FOR BEARS
- First chart is for bulls. If the trend line starts from 5892 gets broken and price closes above it bulls may be able to target 5600 level.
- And that is the very thing bears does not want to happen. Because the second chart shows a possible descending channel for bears. The trend line break discussed in the first chart will make the channel invalid. and things may turn in favor of bulls.
- For bears the support line shown inside the channel should break. which can accelerate the correction.