Comparing bear flags on the S&P 500.The left chart has our current set of circumstances on the 12H settings and the right has the previous bear flag on the 4H settings. As this move matures we will have to look at higher and higher time frames to determine which one is controlling.
The rising red arrow shows on both MACD histograms shows classic bearish divergence between the indicator and price action. The purple arrows shows hidden bearish divergence about to rip this uptrend apart. The 4h chart had a clean cross of the MACD and signal line while the 12h chart shows a sloppier move. The blue fractal is a lot harder to see scrunched off to the left but an honest look at the MACD required such.
The trend lines should be very similar. The resistance held for many bars and then the price action pulls away at the bollinger band. From there previous support turns to resistance and we get a rough double top formation. A second test of the bollinger band at this new resistance and the uptrend is over.
And finally the volume situation is similar. These chars are the daily for the left chart and hourly for the right. The formations have falling volume generally and the OBV and OBV 10 and 20 are clearly under the 100 OBV EMA. A very bearish situation on price action and volume action.
Please see the linked post for some target setting and broader context.
