- During SPX peak in February, we can observe RSI bearish divergence on the 30 minute chart right before the crash. This leads to the next point.
- We can observe a second RSI bearish divergence forming in the last two weeks.
- Following the low on March 23, the bear market rally has ranged nicely in a diagonal channel.
- Ignoring April 1-3 in this analysis....
Thoughts?
I see bearish divergence from bull rally this week and declining volume. The market is irrational right now. Even if we approach a plateau for COVID-19 infections the economy will be slow to pick up. Damage is already done, earnings will be impacted going into Q2 2020, unemployment will remain and a demand shock will remain even if supply picks up....
