For the first time since the beginning of the bull trend in 2009, high yield bonds and the Ratio of XLY/XLP are moving in the opposite direction of the SPX(Diverging).. Another major warning signal. It looks like stocks are getting closer to the ultimate short.
very interesting. only the price action confirmation is needed now.
Leo.Ash
⋅
I continue to observe increased negative divergences between stock prices to rise and indicators that I follow. The sharp rise in recent weeks was parabolic and left several "gaps", days when the indices opened to a value higher than the previous day's closing leaving a space. The parabolic ascents do not end well and this will be no exception. There relevant gaps in the S & P500 in 1905 points, the Dow Jones in 16,401 points and the Nasdaq 100 in 3872. This tells me that the indices will fall substantially in the next relevant decrease for at least these values, then possibly exceed the minimum of 15 October.
The S & P 500 has strong resistance at 2,094 points and the Dow Jones in 18,300 points, the indices can not reach these levels.
The reversal may begin soon, problably in the beginning of January 2015.
metaldome
⋅
I'm short IWM but maybe too early or maybe not.
DaveMackay
⋅
Nice work on this chart, the overlays do a good job of illustrating the point. Thanks
lpernetta
⋅
Agree. Thank you for this tech analysis to reinforce my reply on your over idea Bearish Australia. As Seine says, price action is needed, but it is coming.
iskounta
⋅
Great eye
wangh3
⋅
Add in IWM and you get another reinforcer that people are taking risk off the table from small caps, risky, spec companies. Great post!