Despite the fact that the SPY was able to carve out new highs this week, the RSI continues to print lower highs, thus negative divergence of the RSI foreshadows that the rally may soon stall. Also, note that the $USD is starting to show some positive divergence to lower prices. The Lehman gap fill is $110.34, another important technical level to keep an eye on going into next week.
Earnings this week - AAPL, STLD, AMZN, AMGN, SNDK, BRCM, CAT, EBAY, POT, BTU, FFIV, GILD, GENZ, TXN.
One chart that I found significant this week, was tech bellwether, INTC (not pictured), which had good earnings and favorable guidance, yet it was a fade. Are we selling the news?
POT which has not participated in the last couple of legs of the rally, appears to be setting up to BO of this narrow trading range. But keep in mind earnings are on Thursday morning.
