S&P 500 Weekly MACD Divergence

by Archer Financial Services | Sep 12, 2018
By Blake Robben
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Indicator divergence takes place when an oscillator, such as the moving average convergence divergence (MACD) indicator, doesn’t confirm the movement of price. In this example, weekly S&P 500 prices made new highs while the MACD has posted a lower value from the previous peak. I interpret this as a cautionary signal of waning price momentum. After a divergence is spotted, I establish a bull-bear line, 2876 September basis, which is the key level to hold in order for bull forces to maintain control. Any close below 2876 would suggest lower price action ahead. However, once a distribution bar below 2876 is created, I would then strategically place a stop and reverse point above a short term resistance area because if the signal is legit, prices should not violate the overhead resistance area. Always remember price action is never wrong!  

S&P 500 Futures - Weekly

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​Please contact me for any assistance you may need. Good trading and thank you!
Phone: 312.242.7990 
Email: Blake.Robben@archerfinancials.com

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