Was looking at tech stocks and noticed some bearish divergence there on shorter term time frames. Checked SPY for any similarities and noticed this...
I think its notable because its a long-term chart with multiple RSI peaks since 2018. If this holds true, one possible scenario is that SPY may hit either a double top, or slightly higher all time high this fall, then go into a serious down turn.
Not saying it will happen, but its within the realm of possibility. Gotta watch the fed and what they do... News also... As its SPY we are talking about, it can certainly continue going up as it has for decades, but this is one scenario...
Note, similar, but much lesser divergence occurred on SPY between May 2007 and October 2007 (lower RSI peaks and higher price points), resulting in downturn.
I think its notable because its a long-term chart with multiple RSI peaks since 2018. If this holds true, one possible scenario is that SPY may hit either a double top, or slightly higher all time high this fall, then go into a serious down turn.
Not saying it will happen, but its within the realm of possibility. Gotta watch the fed and what they do... News also... As its SPY we are talking about, it can certainly continue going up as it has for decades, but this is one scenario...
Note, similar, but much lesser divergence occurred on SPY between May 2007 and October 2007 (lower RSI peaks and higher price points), resulting in downturn.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.