We cannot begin to count all the negative divergences. But first…NEGATIVE DIVERGENCES DO NOT HAVE TO BE THE DEATH KNELL FOR THE MARKET…BUT IT BEARS WATCHING!
New highs vs new lows…horror show.
Small and mid caps vs large caps…bad. Just go look at the charts of the russell (iwm) and mid caps (mdy) vs the dow.
A ton of growth names under distribution.
FINANCIALS very weak…though, felt like yesterday they were trying to take a stand…and go look at AMTD, ETFC, SCHW.
A/D figures topped out a while ago.
Add in froth, speculation, the continuation of NO SALES and NO EARNINGS IPOs continuing to come out…
But…THE DOW, S&P, NASDAQ, NDX still look fine with the DOW at highs. Until they break,..they don’t. Just know it is narrower and narrower.
We do want to mention that the SEMIS “feel” like they are finally getting a bid. The SOX looks ok but so many individual names look terrible.
Also, GOLD as well as GOLD stocks may be waking up out of a coma.
Futures up nicely. Just because.