RSI Divergences don't provide meaningful information in SP500
I noticed a chart by another user that showed some scary divergences with RSI peak drops as SPX reaches new highs over a prolonged monthly chart. The 3 signals from 2000, 2007, and 2019 all led to market corrections. I decided to look closer at this myself and found that divergences didn't always lead to sell offs.
My own personal view of the market is that I see lots of reasons to be bearish, but the charts are bullish. I am cautious, skeptical, and open minded about the market direction. If we were going to give credit to the work by Derronpocci, I think we would make the argument that the divergences he found were more profound and larger than the ones that led to uptrends.
My own personal view of the market is that I see lots of reasons to be bearish, but the charts are bullish. I am cautious, skeptical, and open minded about the market direction. If we were going to give credit to the work by Derronpocci, I think we would make the argument that the divergences he found were more profound and larger than the ones that led to uptrends.
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