In my post on Monday 6th October I was looking at the negative divergences on SPX and QQQ, with daily RSI 14 and RSI 5 sell signals brewing on both of those. All of those fixed on Friday, with both RSI sell signals also reaching target on Friday. There are now daily RSI 14 sell signals fixed on SPX, QQQ, DIA and (weaker signal) IWM. This is suggesting a larger retracement soon to reach those targets.
I was also saying that until we saw some strong breaks below the daily middle bands on US indices they remained in a strong uptrend from the April low. On Friday they all broke hard below their daily middle bands so are all now in a possible topping process for larger retracements than the ones we saw on Friday.
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