Monday, May 4, 2009

Some divergence forming

While London is shut, my broker is kind enough to provide a quote on the FTSE nonetheless.

Given the non-existent volume I will be focusing on the US market today, but I'd like to bring your attention to the fact that some divergence has apparently began to build on intraday charts.

Now, this might relate to a simple retrace down, or the beginning of something larger: for now, I see some major divergence only on the 1 hour intraday, and would prefer to see it ripple onto longer time frames. However, it's something to pay close attention to.

Below is a hourly chart: I usually use RSI, ROC and the slope of the linear regression to spot divergence.


Update: as of US close the FTSE is quoted in the 4320s. The little divergence on the hourly has clearly broken as you can see in the chart below.

0 comments: