The price/momentum divergence in the daily $SPY chart

The picture below tells it all:

SPY_Daily

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

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