From All Star Charts:
… We’re seeing the stock market and momentum behave in a very similar way that marked an important bottom last year.
When the S&P500 made new lows this past October, the Relative Strength Index did not. RSI was putting in a higher low, which is a bullish divergence. Sure enough, the S&P 500 rallied 30% into the first quarter and the Russell 2000 ripped 40% higher.
I’ve noticed that with the recent lows in the S&P 500, RSI was again putting in a higher low – just like last year…