If we look at the past RSI divergences and see how they played out. I would contend that from this point we are at now from a TECHNICAL perspective, there is ZERO reason to be long the Nasdaq or tech right now. We can see that every time these divergences formed we had a substantial pullback.
Take a look at that purple divergence and then the light blue divergence. Whenever we have had both in conjunction, a pullback of around 20%+ happens. If we just have a light blue, we get a 8% pullback. I would venture to say that this next pullback will take us to the 200 area.
-Sherem
Take a look at that purple divergence and then the light blue divergence. Whenever we have had both in conjunction, a pullback of around 20%+ happens. If we just have a light blue, we get a 8% pullback. I would venture to say that this next pullback will take us to the 200 area.
-Sherem