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Prices Keep Going Up Despite Non-Confirmations
http://www.tigersharktrading.com/articles/5690/1/Prices-Keep-Going-Up-Despite-Non-Confirmations/Page1.html
By Mike Paulenoff
Published on 09/25/2006
 
Mike Paulenoff doesn't usually see this many momentum non-confirmations while the price structure makes new highs.
Prices Keep Going Up Despite Non-Confirmations

In my world I don’t usually see this many momentum non-confirmations while the price structure makes new highs.  Momentum peaked on September 5 with the SPY at 131.85.  With each successive new high within the upleg off of the July 18 low (122.39) -- at 132.45 on September 13, 132.77 on September 20 and today at 132.85 – my RSI momentum gauge made lower highs!  In the past, when this type of “set-up” emerged, one of two results occurred:  either  a very serious price implosion that confirmed that prices were on borrowed time, or a powerful upside explosion in prices that spiked the RSI upward very quickly to adjust the lagging momentum situation.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.