On April 29, i wrote
If we get a daily sell signal at any point now and a strong selloff, it would leave a nasty diveregent top on the weekly charts. It would also produce a daily/weekly combo sell. Now i have no clue whether that will happen or not. It's just a hypothesis at this point. So i call it a wave C and a terminal wave of this bull market. No Ifs and buts. Now i ask the weekly RSI to prove me wrong.
I got the sell signal on daily on May 5, which i posted on traders-talk.com. Sorry i have not been actively updating this blog as i am very busy with my trading .
Daily sell on May 5
SPX is at a critical juncture on the weekly charts. So i thought i would post an update to my April 29 post. If we break below SPX 1318 this week, then my system will go into a weekly sell this week. A daily/weekly sell combo is a dreaded thing. If SPX has any intentions of making a new high, 1318 is a must hold this week. Otherwise the back of the bull market will be broken. Trade safe !