The price/momentum divergence in the daily $SPY chart

The picture below tells it all:


Notice that while price continues to trend up, the momentum indicator below is trending downward.  Will price be correcting soon?

I’m getting cold feet.  I’m now 50% cash; however, don’t mind me because I can be overly cautious from time to time.

I will watch the resistance line @ $151.42 which is the high established in Feb 1st.

Trade well!

Edit: I’m currently holding LRAD, AMRN, USU, ETRM, & EMAN & 50% cash

Categories: SPY

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: