In the past when these divergences set up, it implied that profit taking was just around the corner. Given that the market just had a decent round of "profit taking", I think there is a different way to look at this divergence and structure, but it will be more clear as time goes on. For now, we can see that fewer and fewer stocks are driving the gains in the market. This could very well be the results of the weakness in Oil Stocks. The market doesn't go up all together, but in stages.
The normal event to expect in the coming 12 months would be a correction where a sustained period of 1-3 months holds below the 50% level in the "%of Stocks > 200 Day Avg"
For now, keep an eye on everything and stay tuned to TradingView.
Tim 10/31/2014 1:45PM EST
Maybe you can still publish it so we can see what happened before. I never looked at this pair before, and it is interesting how the diversion is present even here. Was writing a huge question and then seen the answer in your chart :) im getting to understand your thinking more and more
Listen I've been beaten up, so excuse me if I'm a bit tired, not trying to condemn anyone here. Just saying that anyone can post anything and make up a scenerio. I'm sure poor old TIm makes a good living.
Also: Did you see the bearish calls I made before the market drop? It's important to share what we all are seeing out there in the market and make our decisions. If you see something that refutes the chart, feel free to post it, but not 'after the fact'. If you see a way to take a long-side trade and label your risk, your upside target and your time frame, then by all means go ahead and label it and publish it.