The main pattern on is its mild uptrend since the beginning of July. The S&P 500 made new all-time highs 11 different times last month, but the didn’t make a single new low.
Next, July 19’s high was more than 3 points above June’s high – even though SPX made a higher low. In other words, is no longer confirming SPX's uptrend. Similar divergences have occurred before other pullbacks, especially in January and September of 2018:
Traders shouldn’t reach too many conclusions based solely on the chart above. This application of is similar to using indicators like , which can show divergence for some time before a pullback occurs. At this point it’s just another potential sign of spreading weakness.
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