Momentum has fallen, price will follow
- The MACD indicator is a very common and useful indicator to measure momentum
- You can clearly see how XLF had a bearish cross for the MACD while price has crawled higher for 4 months
- This is a very clear sign of dying momentum and almost always precedes a correction
- If you see the linked chart below, XLF has been going through a clear distribution phase for a few months now
takeaway: ~11% correction to the ~35 level in the very near future. (couple weeks)
- You can clearly see how XLF had a bearish cross for the MACD while price has crawled higher for 4 months
- This is a very clear sign of dying momentum and almost always precedes a correction
- If you see the linked chart below, XLF has been going through a clear distribution phase for a few months now
takeaway: ~11% correction to the ~35 level in the very near future. (couple weeks)
