Alan Bradley | Nov 20, 2014 04:06AM ET
Taking a look at the weekly charts of the S&P and the NASDAQ, we see that both indexes are still holding at their maximum distance from their weekly 65 EMA lines shown in blue in the upper part of the two charts. Also, both indexes are still holding at the upper line of their expanding triangle patterns, an unnatural place to just hold when extended so far from the weekly 65 EMA line.
Looking at the middle section of the two charts, we see that the S&P and the NASDAQ both just pegged the weekly 100 stochastic level after making a zero to one-hundred stochastic run in record time.
Looking at the bottom section of the charts above, we see that the bearish RSI divergence that took the market down a couple of months ago is set up once again for doing the same.
Normally, this is a textbook sell off situation ready to start but two things have to be considered:
We will see...
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