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JSE:J200 Top40 Divergence with Number of Stocks above 50 & 200MA

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South Africa Top 40 Index (JSE:J200)  
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JSE:J200   South Africa Top 40 Index
Support and Resistance Supply and Demand Volume jse jsej200 jsetop40 wyckoff
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supportandresistance supplyanddemand volumestudies jse jsej200 jsetop40 wyckoff
Considering the number of stocks above the 50 and 200 daily MA we have seen a divergence with price. Price is making new highs but the number of stock above the MAs are decreasing. This indicates some weakness developing in the market and potentially and need to watch for reversal at resistance.
Comment:
snapshot
The divergence continues with the number of stocks above their 50 and 200 daily MA making lower highs. However, on the Top 40 index, the 50 MA has crossed the 200 MA. The question is when will the underlying weakness be translated into the price because the Top 40 continues to act strong.
Comment:
The JSE Top40 has just broken below the 200Day MA and seems to be holding. The number of stocks in the Top40 above its 50Day MA has steadily been declining since the beginning of the year in spite of the recent rally and has now reached only 10%.
snapshot

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