RSI Bearish Divergence On Major Indices
Both DJIA and S&P500 closed with a doji at evening star position after touching trendline support. This may signal the end of a three days loosing streak for the US indices ( evening star doji is a 3-day pattern so confirmation is needed on Monday ). However, all major indices namely the Dow, S&P500 and Nadsaq are showing RSI bearish divergence. This forth warn weaknesses ahead. As for the STI, it is unclear whether we are heading for a triple tops, an impending ascending triangle or even a rising wedge. Confirmation is needed depend on which trendline it is breaking. It is desirable to stay defensive before the trend becomes clear.
Labels: Market Direction
posted by Market Wizards @ April 07, 2012
