This is a follow up to Mondays post on the SPY. I changed the style to a line of the weekly close. You can see that with Fridays down day the SPY did close below the rising trend line. Of course just because a trend line is broken it does not mean necessarily the trend will reverse. It could continue to go up at a different rate or go side ways. On the longer tern chart on the left I see the last 4 times there was a fairly long up trend line break (including this current break). At points 1 and 2, when the drop was the greatest, the RSI was less than 65 with a bearish divergence when the line break occurred. At 3 the RSI was greater than 65. It wasn't until a little later when there was a turn down with the RSI <65 that there was a rapid drop. Currently we have a bearish divergence with the RSI less than 60. The next element of a trend change is that the previous low (horizontal dashed line @ 205.74)) needs to be taken out. Also with the horizontal arrows: timing seems to be ripe for a drop. Have a great weekend.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.