Whenever a stock or an index makes a new low or a new high, we are able to compare this new level to where different indicators stand. I’ve noted before that I’m always looking for divergences or various types of market ‘tells’. With Friday’s drop below the 200-MA and breaking passed the previous low from May 18th, I noticed that the RSI and On Balance Volume did not mirror the new low. As always, these types of divergences can work themselves out and price could ‘win,’ taking both of these indicators to a delayed-new low; but this is nonetheless important to take note of.
Although, we still have the major market forces of Europe this week as well as Bernanke taking the microphone in a few days. Never look at anything in a vacuum… It’s all important, until none of it’s important, let that sink in.
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