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No. of Recommendations: 2
Look at this chart:

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=7&m...

Is this a classic divergence signal? A falling knife about to start falling big ??

The blue lines are where the RSI peaks above 70, the red where the market peaks after the RSI peak. The market rises between the blue and the red line while the RSI falls. Is this a classic divergence signal ??

The last two times this happened were followed by the 208 meltdown and an 18% decline in fall of 2011.

What comes next?

DIYINVSTR
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No. of Recommendations: 4
What comes next?

OK, I'll bite.
The person drawing the chart will draw the vertical lines in different places?

On the suggested metric in that chart range, for example, arguably the
biggest divergence was Q2 2009 when...nothing happened.

Jim
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