Browse Stacks: Analytics: spy weekly vs MFIsc.png

spy weekly vs MFIsc.png

Weekly SPY vs MFI: To me this is an interesting chart but then again unlike many slopers I like indicators. Very often indicators such as the MRI and the RSI have a different range in bull and bear markets. Often the first clue the wind has changed direction is when the indicator fails to stay in the bull or bear range. In this case for example the blue shaded areas are when the weekly MFI highs are<75 and the lows go <25. Now for the first time since 2008 the MFI is failing to get to 75 before cycling < 50. It hasn't gone down to <25 recently but you can see the pattern is not encouraging for a continuation of the bull market. Then again no one can predict the future, and the indicator can change tomorrow. But then again most of TA is based on patterns. This pattern suggests major downside likely ahead. Best to ya. T.

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