After a technical signal is generated on one time frame we want to see it appear on the lower time frames before taking action. As seen yesterday the momentum indicator flashed a "sell" on the monthly chart at the end of June. Selling at that point would have been early.The weekly chart is presented today. Again, our confirming indicator at the top, RSI in the middle and price bars of the cash S&P500 at bottom. The sell on this chart came on July 20. Note that the highest closing price was on July 13 but the momentum was already past its peak. This bearish divergence was our technical "sell" signal. As of the end of August the weekly chart remains on this sell signal. Unlike the monthly chart we haven't seen any sign of a reversal yet.
By the way, the daily chart showed its own momentum "sell" signal on the 20th of July as well. It was then that the market moved sharply and quickly lower. I'll take a closer look at the latest daily chart before the market opens tommorrow.
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