As I explained to our pal Chip, indicators can change while the price stands still. In this case, the lack of movement caused the indicators to break-down - had the stock moved up, we would have been fine.
Still not sure what you are using to give you MACD values, as they don't correspond to my chart. On 11/3, I have a MACD value of apx 0.5, which increase to apx 1.0 on 11/17. On 11/19 the MACD crossed down through the signal line making a sell signal at apx 0.87.
Previous MACD highs were 1.75 on 5/12, 1.7 on 7/25, and 1.25 on 10/2 - clearly a divergence while the stock price made new highs.
While things COULD get quite ugly here due to the divergence (I dunno, maybe Chip's famous number of 18...) I doubt it unless the market goes to hell (a possibility). If the market can stabilize, I think we've already seen the effect of that divergence, which is also visible in the market averages.
I am using Metastock for Windows, using daily data from Quotes Plus. What software and/or service are you using that are giving you these wacky MACD readings? |
