NYSI divergence

    Posted by matt on 30th of Jan 2024 at 10:36 am

    $NYSI - Chart Link-  

    here's a mockup of how we could see that divergence play out on the NYSI - you can see it's lagging price and is about to cross back up over the 9 EMA, if it does then, then the next cross back down is likely a good short signal

    Matt, I looked more closely

    Posted by skwan1940 on 14th of Feb 2024 at 05:40 pm

    Matt, I looked more closely at this chart and I'm showing that on Feb 1, the NYSI closed at 672.34 while the 9ema was 672.23, so technically it triggered a long signal but didn't confirm with a confirmation candle.  And then the next day on Feb 2 the NYSI closed below the 9ema where the $SPX candle low was 4907.99- so if $SPX closes below 4907.99 that would confirm the short.   Chart Link - $NYSI on Feb 1 w9ema

    yep Rik, it slightly crossed

    Posted by matt on 14th of Feb 2024 at 10:05 pm

    yep Rik, it slightly crossed but such a tiny cross, if one took it yeah it's up. Otherwise the divergence is what I'm observing/showing

    Thanks Matt.  The thing I

    Posted by skwan1940 on 14th of Feb 2024 at 11:39 pm

    Thanks Matt.  The thing I find interesting is that you know how $NYSI crossed below the 9ema in early Jan when the S&P 500 was around the 4700 level- well if one were to wait for the candle confirmation, they would've had to wait until $SPX closed below that 4700 level (which hasn't happened as you pointed out and thus led to the current divergence on the chart).  But since there was that TINY positive cross on 2/1 and then a negative cross on 2/2 (the low for $SPX being at 4907.99), now the threshold for confirmation of the SELL signal is now at 4907.99 and not at around the level 4700 level anymore.  Would love to see how it plays out.

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