Saturday, September 12, 2009
2008/2009 VS 1938 RSI Divergences & ?Megaupticks?
All upward sloping lines are dashed. Downward sloping lines are solid. In 2008/2009, two NASI Price/NASI RSI divergences are highlighted in purple & lavender. The SPX demonstrated a divergence on the 2008 downleg. The two time periods associated with the 2008/2009 NASI Price/NASI RSI divergences were located on the 1938 chart. The 1938 DJIA did not demonstrate a divergence with RSI during the 1st time period. In both 2009 & 1938, the SPX/DJIA formed a divergence with it's respective RSI (red lines). This may have led into a NASI Megauptick (red arrows) followed by significant market drops in both centuries.
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