Planning Another October Intraday Reversal from Positive Divergences

Oct 13, 2014: 11:59 AM CST

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.

This is a quick update post but we’ll again track the odds – and trading opportunities – of another intraday reversal up off the 1,900 support level  toward the 1,945 region.

Continue tracking price with internals as the session progresses.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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2 Comments

2 Responses to “Planning Another October Intraday Reversal from Positive Divergences”

  1. New Lows into Support Market Update and Stock Scan Oct 13 | Afraid to Trade.com Blog Says:

    […] For additional commentary, see this morning’s update on “Planning Another Possible Intraday Reversal from Positive Divergences.” […]

  2. New Lows into Support Market Update and Stock Scan Oct 13 - Trading Your Own WayTrading Your Own Way Says:

    […] For additional commentary, see this morning’s update on “Planning Another Possible Intraday Reversal from Positive Divergences.” […]