- S&P 500 Daily Chart
- S&P 500 Weekly
The Chart on the top shows a somewhat overbought market on April 29th and a normal correction. I see no unusual predictive ability examining the daily chart of the S&P500.
On the other hand, the chart on the bottom shows a major bearish divergence on April 29th . Note this is a weekly chart and has quite a different outcome. This presaged a sharp downturn although I had no way of knowing the severity of the drop. The month of August so far has turned out to be worse than any month in 2008. Based on the chart on the right, it shows no sign of turning upward soon either.
The difference between the two charts is the interval. One is daily, the other weekly. It’s helpful to have major trends confirmed by both intervals although it is quite unusual.