|Simple Trading Ideas||
The monthly chart below shows SPY, the S&P 500 ETF with two indicators, RSI above the chart and PPO below the chart. RSI is overbought and there is a slight divergence, it has been moving lower while SPY was moving higher. PPO(1,120) tells us the price difference in percentage between the 1- period EMA and the 120-period EMA (10 years). The 1-month EMA is 53.698% higher than the 120-month EMA. PPO(1,120) has reached extreme levels, higher than back in 2007. Also notice that there is a slight divergence here too, PPO(1,120) failed to reach new highs.