Tag Archives: divergence

Expectation Divergence Amidst High Strength

Stock market strength is high and this fact cannot be denied. But there are certain important divergences. Could it be that this is a “weak rally” versus a “strong rally”? Dip buyers show up after almost every lower opening but … Continue reading

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Australian S&P/ASX 200 Inside Day Pattern and Divergence

The Australian S&P/ASX 200 index has risen 11.44% this year, moving on an almost straight line to the middle of February but then volatility increased and little progress has been made. Since February 20 of this year this index has gained 2.3% and there … Continue reading

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The S&P 500 and NASDAQ-100 Divergence Shows a Divergent Bias

The current pattern of divergence between S&P 500 and NASDAQ-100 had a positive bias in the 1980s and 1990s but after 2000 the bias is negative. During all 5 times since 2000 that this pattern has occurred, a stop-loss of 3% was triggered … Continue reading

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Bonds are Oversold After Finding Support Just Above Their 200-day SMA

Last Wednesday before the market open I wrote that “If the short-term double bottom at $123.75 in TLT is broken to the downside, testing of 200-day simple moving average support near $120.25 is quite possible”. I did not expect this to happen in just … Continue reading

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A Divergence in Russell 2000 Index

Divergences can be very tricky because they must be analyzed in the appropriate context. Especially divergences that involve an indicator that uses weighted averages can be very tricky because they are asymmetrical with respect to price action. Here is an example of a divergence in IWM, … Continue reading

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