Let’s take a moment to view a “Big Three” Market Internal Chart of the S&P 500 to note yet another positive divergence and possible “intraday reversal” outcome.
Here’s the current picture and price pathway:
First, take a look at my intraday update post (just like this one) from October 8th which showed a near-identical pattern.
Mid-day October 8th, all three Market Internals showed a clear positive divergence (the indicators were making higher lows at the same time price traded to a lower low) and the forecast indicated a likely intraday reversal.
That was indeed the correct call as the market reversed higher off the 1,935 level to rise roughly 45 points higher into a negative divergence at the 1,970 target level.
Quite simply, we’re seeing a similar positive divergence – compare the yellow highlights – to October 8th. Continue Reading…