On Friday, July 13, both SPY and QQQ put in divergent highs on the 60 minute chart.
To those not familiar, a divergent high is one where price rises to a new high while the momentum ( PPO or MACD ) and RSI peak at lower levels.
While this bearish divergence can persist for a long time, it is something notable and bears worth watching. It will be very important to watch this relationship in the next couple of days. Does price burn through the divergences and push higher or succumb to the fading momentum? Stay tuned!!
Trade Tip – Zoom down on time frame to identify early turns in price
For stocks you are actively trading, consider creating a 60 minute chart on them. They will signal early turns in price. A 60 minute chart will enable you to fine tune an entry or exit.
Again, this is only really meaningful if you are an active trader and can jump in during the day.