As posted earlier on this blog, it was shown how the monthly S&P500 cash chart was displaying an RSI momentum failure.
Today I present a weekly view. Note the blue arrows. The arrow in the bottom pane of the chart is pointing to the recent highest price close. The arrow in the top pane shows the RSI on the same date at a new high for the move. New high in price, new high in the momentum (RSI). All is well for the bulls, right?
Perhaps not. The middle pane shows a second momentum indicator that was designed to show instances when the RSI failed to diverge at price highs or lows. Note how this indicator made a lower high.
Another reason I am "down" on equities right now.
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