This is to update my blog post of Oct. 8th. This chart is the same as was posted then, but updated through yesterday.

See my Oct. 8th post for explanations of what’s in this chart.

Although on an daily basis price has started to turn down, overall it is still in an uptrend since it is still showing higher highs and higher lows. But now, the MPVT is showing flat highs and flat lows, and the MACD is clearly showing lower highs and lower lows. So, these two indicators are negatively diverging from the price, showing underlying weakness in the market. In the upper pane, we see that the average volume on down days is opening up an even wider gap above the average volume on up days, telling us that the “smart money” is in a major retreat from the market.

Tweet This Post