Looking back the last 15+ years, there are 13 instances of a negative RSI divergence on the $SPY that I picked out as significant and track the returns from the end of the confirmation of the divergence.
The current divergence is in its 5th week from confirmation (18 Feb 2025). As of end of last week, we have posted -6% drop. This drop is higher than the average -3% drop.
There are 4 other times that we have posted minus 5-6% drop (exclude the Covid Crash). And 3 of 4 of those times, we experienced a further drop in the next 4 weeks.
#trading #investing #technicals
I come back to this speech every once in a while:
โin the 1,526 singles matches I played in my career, I won almost 80% of those matches
โฆ what percentage of points do you think I won in those matches?
only 54%.โ