If SPY So Much as Clears Its Throat, Watch Out
Updated
The Stochastic RSI on the weekly chart can be an excellent oscillator to detect trend changes. Over the last two years, every single time the slow line has crossed down from overbought, we have had a significant pullback. As of today, the slow line has been trending down and is resting directly on the overbought perimeter.
Virtually any weakness this week will push it out of overbought.
Virtually any weakness this week will push it out of overbought.
Comment
I apologize. I meant to type the "fast line" in my comments above in both references to the Stoch RSI lines.Comment
At today's close, the SPY printed a 79.89 on the fast Stochastic RSI. That is now below the overbought level. If it remains there by the close of the week, the SPY is likely doomed.
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