This is an awesome headline rally that followed a huge gap up, that might be a good runner for the next week or so, but the intraday bearish divergence is just so obvious. The ES is now up 40 points, 3.5%, and the charts below are snapshots from my iPad.
Notice that the USD futures, DX also has a bullish divergence... and another interesting point is that Crude (CL) futures had a similar bearish divergence and the rally was not sustained even as the ES continued to rally more.
While the news at the opening of the week is really awesome, I am left to wonder if this is a sucker rally of sorts... I'd be watching that ascending wedge as well as for a reversal swing point.
The MadScientist
28 November 2011
Note: ALL material posted here is from my personal opinion, and my opinion may differ or change without notice. These do NOT constitute as solicitation, investment nor financial advice. By reading the materials presented here, Readers acknowledge the awareness that the materials are intended for educational purposes only. For investment(s) advice, related decisions and/or actions pertaining to investments, always consult your own qualified financial advisors, brokers, etc.
Charts are from TD Ameritrade Thinkorswim platform
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