Thursday, 2 July 2015

ASX 200 daily chart bullish RSI and MACDH divergences warn of further rally

Daily chart shows bullish divergences on the RSI and MACDH, warning of further rally. The aggressively bearish Elliott Wave count I had been showing does not seem to be working out, and now it appears that the move lower from the April high could be complete. I may post an updated 4 hour chart in coming days to illustrate how the decline could be complete, though I am short of time today. Hint: there are five waves up from the low. Trading edges often fail, and I don't mind this as failed edges are powerful edges themselves. A problem arises if trading edges are interpreted as forecasts, something they are not.

Weekly chart

S&P 500 cash market retesting Head & Shoulders top neckline, beware of a bullish failure

On Wednesday the cash S&P rallied to retest the neckline of the illustrated Head and Shoulders top.

The futures have rallied during Asian and European trade, putting a bullish failure of the H & S top on the cards. For now, simply something to consider. Trend line resistance on the futures is very nearby. Let's see.