The Nasdaq 100 has been the strongest US stock index - so far it is the last index to hit a 2016 high.
Yet even the strongest index is showing significant monthly bearish divergences.
The monthly RSI has a triple bearish divergence vs. its November 2014 peak.
The monthly MACD line and histogram also have significant bearish divergences.
Seasonally September through early November is bearish for stocks.
The SPX and DJIA have been in a narrow trading range since July.
During this sideways activity the number of 52 week lows on the NYSE have been rising.
The US stock market and perhaps most of the global stock market could be just a few days away from a sharp decline.
Watch for a break below SPX 2114, this could trigger a rapid decline to the low made in February.
Mark
Yet even the strongest index is showing significant monthly bearish divergences.
The monthly RSI has a triple bearish divergence vs. its November 2014 peak.
The monthly MACD line and histogram also have significant bearish divergences.
Seasonally September through early November is bearish for stocks.
The SPX and DJIA have been in a narrow trading range since July.
During this sideways activity the number of 52 week lows on the NYSE have been rising.
The US stock market and perhaps most of the global stock market could be just a few days away from a sharp decline.
Watch for a break below SPX 2114, this could trigger a rapid decline to the low made in February.
Mark