SPX and NDX Divergence Update 1/10/17

SP:SPX   Der S&P 500 Index
144 8
Today 1/10/17 the divergence between the SPX and NDX continued as the NDX and main Nasdaq Composite (IXIC) made new highs that were unconfirmed by SPX and DJIA .

This is a sign of thinning market breath. The situation is actually much more bearish if you drill down and examine new 52- week highs.

Nasdaq Composite new highs on 12/8/16 were 562
1/5/17 190
1/6 122
1/9 93
1/10 96

The higher the Nasdaq goes, less stocks are making new 52 - week highs.

The internal strength of the US stock market is very weak. There is a high probability a decline to at least the November 4th bottom could begin on 1/11/17



So you're saying the better the NASDAQ, the worse the SPX will behave?

Thank you
markrivest sarquax
Hi @sarquax,

No. I'm there is a divergence with the other two main US stock indices.
The Nasdaq is making a new high that is unconfirmed by the SPX and DJIA.

This is a bearish signal and a potential prelude to at least a correction.

In this situation the Nasdaq would be the last of the three main indices to top.

sarquax markrivest
@markrivest, Okay thanks,
what do you mean by "the Nasdaq would be the last of the three main indices to top"?
I am a beginner sorry :s
markrivest sarquax

Hi @sarquax

The main Nasdaq would be the last of the three main US stock indices to reach a rally high.

In 2015 mid-May the DJIA, ,SPX and IXIC made 2015 rally highs. Then in July IXIC made a new high while the DJIA and SPX failed to make new 2015 highs.
A few weeks later was the August 2015 mini crash.

nice- i like it. so far, the direction is potentially up until opex - after jan 20, all gains will come off the table
markrivest Reekardo
Hi @Reekardo,

Thanks for the comment.

Reekardo markrivest
@markrivest, look at futures hold 2159 - unfreking believable... they are going to slaughter the market when trump is in the office.
if he ever makes it there.
markrivest Reekardo
Hi @Reekardo,


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