Okay yesterday we rallied again. And honestly, I would have thought that profit takers were coming going to send us marginally lower – but I was wrong. Looking at the intra-day chart this morning the one thing that stands out like a sore thumb is the Bearish Divergence on RSI.
We talk about divergence a lot around here and it’s one of (not the only) better signals you can get in a market. When the stock is moving higher and momentum is falling it means that smart traders are getting out quietly without YOU knowing it. Hence the stock will likely fall.
My true gut tells me that we could be headed for 50% retracement of the big move or about 1,065 over the next week.
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