chart: SPY vs Hi - Lo 10DMA

Posted on June 22,2017
The 10 Day Hi-Lo has created a triangle pattern.
When the SPY makes a higher high while the 10 day Hi-Lo starts to drop, be on watch.  In the past divergences appear at most turns in the market.  At the very least, the 10 day Hi-Lo develops lower highs and lower lows at or near tops and higher highs and higher lows at or near bottoms.  
But here we have a triangle pattern and right now there is no indication if it will break out of this pattern up or down.  But it is getting closer to the vertex.  So a break out should happen very soon.

The SPY vs Hi - Lo 10DMA as of today's close

 It finally broke out of the triangle pattern.  Let's see if it has the power to pull the market down in August.  There has been some mixed breadth lately, so there is a chance.   Also the Picasso cycles still suggests a pullback in August.

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results