Happy Friday everyone.
Look, we're range bound and it appears that nothing is going to get this market to move with any significance till either later in the year or early next. The top is being set, but there is still a chance that the top is not in. Based on all the divergences on the daily and weekly indicators to price and their over bought status any break of these divergence lines would be a tremendous upset to the bears. I do not think they will break.
The dailys are what I like to call playing in the street. They are fooling around in the middle of the road and do not know what side of the street they want to be on. This is not a safe spot for ST bulls and beard. This makes for lower volatility and lack of any clear direction. On the other hand the weekly RSI is testing it's top divergence line right now. Thus, I bring you the weekly chart.(that is better viewed here).
I'm not going to waste a lot of our time writing about this chart cause the picture tells 1,000 words and that will save me a lot of typing. If you have any questions, email or leave them in the comments section. Bottom line is the weeklys are and have been overbought with massive divergences to price. If the market were to make a move north from here it would be like a 21 point underdog winning a game straight up. The warning still exists that the weekly RSI (see yellow box) can still run a ways up here in fantasy land. The one thing that is a definite, when that lower red line on RSI crosses, it will be all over then.
GL, have a great weekend and happy holidays!