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Posted in Lee's Free Thinking

Do Negative Divergences Matter 5/18/21

This is a syndicated repost courtesy of Stool Pigeons Wire at To view original, click here. Reposted with permission.

When I first started doing MACD charts in Metastock on an Apple 2e computer in 1982, I thought that negative divergences between oscillating indicators and the market averages were the be-all, and end-all in TA.

Now The Balance Begins To Shift

The balance between QE and Treasury supply will begin to shift in July. The underlying bid it has provided for stocks and Treasuries will begin to fade.

This report tells why, and what to look for in the data and the markets.  GO TO THE POST

Truth is, they’re meaningless. We have another one this morning on the hourly chart of the ES fucutures. Like all the others I have seen for the past 39 years, this one could lead to a rollover, or it could lead to reacceleration to the upside. Take your pick. I will take door number two, just because the Fed and Treasury continue to pump godawful amounts of money into the market every day.

That would mean we’re headed for a mini breakout to 4185. And if they clear that, a trip to revisit the highs of last week.



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Treasury Adds to Fed QE to Create Bullish Cash Tsunami


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