...based on this chart, which I found very interesting. Now I am...

...based on this chart, which I found very interesting. Now I am not an expert in TA and I am only posting this chart to get some discussion happening. I would be interested to hear from anyone with more knowledge on charts than me. Anyway, here's my analysis on why I found this chart interesting.

The chart shows NMS SP, followed by the 65 day ROC Oscillator based on a 260 day MA and Money Flow Oscillator also based on 260 MA. I have charted other indicators and they all show the same patterns.

The significant thing is that since February this year all oscillators are showing a positive divergence to the SP. I.e. as the SP has been declining and making new lows, the oscillators are increasing and making higher lows. This indicates a weakening in the current downtrend. This same pattern can be seen for the 2005-2006 period when the SP was last in a LT downtrend. When the oscillator reached the equilibrium line, there was a corresponding breakout in the SP resulting in a LT uptrend in 2007. Also notice the breakout occurred in October 2006 (coincidence?).

To add further weight to the significance of the oscillator, you will note that in the 2007 SP uptrend, the oscillator shows a negative divergence. I.e. as the SP made new highs, the oscillators made new lows. This indicates that the SP trend was weakening and was due for a reversal.

So i am inclined to believe that we are fast approaching the point where we should see a new reversal in the LT trend.

What's everyone's thoughts on this?