My predictions from the last week have played out perfectly:). We had a sell off which have completed the wave structure and we have started building a base. So I continue to believe that the next move is a rally which will form the right shoulder of a H&S topping pattern.
You can see the charts from the last week. Now we have divergences on the histogram and RSI. NYSE McClellan Oscillator and S&P500 Percent of Stocks above 50 day moving average hit extremes and tell us to expect move in the opposite direction.
But this rally will make lower highs and it will be part of a topping process. Why? -Because of the MACD divergences on the weekly charts.
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