Tuesday, August 1, 2017

Bullish signs

New highs in USA indices have been accompanied with new highs in RSI in monthly chart so negative monthly divergences were cancelled. This may be the future of other indices in the world also, giving us still one leg of bullish run until Q2 in 2018. Bullish RSI line in SP500 seems to be valid and leading the index higher. It is probable that most of the other indices will follow. CCI30 is positive in weekly charts of SP500 and Nasdaq so the indices are in bullish mode. 

In DAX CCI30 dipped to slightly negative in weekly chart, but this is usually a sign of meaningful bottom. If not it may be a sign of meaningful dip. So this week (and maybe more) should be bullish. RSI-divergences gives us a chance for this. Negative monthly RSI-divergence is still valid in DAX so we must be careful and see what happens if DAX rises near the ATH. 

Long term negative divergence is valid in Bovespa but Nifty has risen and cancelled its own RSI-divergence. Anyway the bullish run has created other one and we must be careful what will happen. In weekly chart RSI is in 80-level and there are no divergences so seems to me that the bull is very strong. Usually (but not always) indices need some divergences before they turn south. It is obvious that CCI30 is positive in weekly chart. Nifty50 has risen slightly over the trend-line from previous major tops, so if we still see bullishness we can conclude that index is in very strong bullish mode.