We look at four intermarket divergences in the weekly timeframe. The divergences reveal interesting dynamics. Access to the article requires a Premium Articles or an All-in-One subscription.
Divergences are defined as opposite signs in the returns of the assets in a timeframe of interest as follows:
R1 is the return of asset 1 and R2 is the return of asset 2. A divergence occurs when R1 × R2 < 0
We start with S&P 500 and Dow 30 indexes due to a divergence last week, with the former rising 1.6%, and the latter falling -0.2%.
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Charting and backtesting program: Amibroker. Data provider: Norgate Data
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