Short- Term Momentum Update – 01/13/23

When markets are in a steadily rising trend, bearish momentum divergences will emerge which could later be invalidated.  This phenomenon is occurring with the S&P 500 (SPX).  

The  15 -minute SPX chart courtesy of Trading View illustrates its short-term trend.

Recent blogs on this website have illustrated that both the SPX – 15 – minute MACD and RSI had bearish divergences. 

Note that on 01/13/23 the MACD – Histogram broke above  one of its bearish divergences.   On 01/12/23 the highest MACD – Histogram reading was 1.43.  On 01/13/23 with the SPX at a higher price had a MACD – Histogram reading of 1.80.

On 01/13/23 MACD lines  had a bearish divergence and the RSI had a triple bearish divergence.

The MACD – Histogram break of a bearish divergence is the first hint that the SPX could continue to rise in the coming week.  This is significant because as of 01/13/23 the SPX closed the session in the area of its 200 – day moving average and the declining trendline from the January 2022 top.  If the SPX can decisively move above this level it opens the door for a move up to at least the 4,400 area.   

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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