I’ve had mixed success in using this as a market timing indicator. It often gives false signals and you can’t really trust the first signal that is given. However I’m finding that the best way to use this indicator is when negative/positive divergence occurs, or it has some sort of technical pattern breakout or breakdown. I do believe there is value in using this chart, but only as a secondary/confirming indicator.

One such breakdown out of a a massive wedge formation using the three line break pattern has occurred this week with very bearish implication. The RSI is really gaining momentum to the downside and when you look at how far it can go using last July as an example, we could just be warming up.

My bullish scans are turning up almost nothing, with SPPI being the only bullish chart out there I like. As long as my scans remain empty, I’m going to continue to assume the market has more to fall.

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