Here's a look at Friday's close status for 2 divergent pairs (SPY/SH and XIV/VXX) and one convergent pair (SPY/UPRO)...one of our favorite pairs that's performed well over the past year although only the past 6 months returns are shown. If you examine the 3 studies carefully the net conclusion is that we still have breathing room to the upside before a potential reversal kicks in.
This conclusion is further supported by the SPY TrendX....right side panel.
We've been burned before in the face of bullish odds by negative news surprises but the odds for now are clearly to the upside.