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Four Intermarket Divergences [Premium Articles]

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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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Specific disclaimer: This report includes charts that may reference price target levels determined by technical and/or quantitative analysis. No charts will be updated if market condition changes affect the charts’ levels and/or any analysis based on them. All charts in this report are for informational purposes only. See the disclaimer for more information.

Disclaimer:  No part of the analysis in this blog constitutes a trade recommendation. The past performance of any trading system or methodology is not necessarily indicative of future results. Read the full disclaimer here.

Charting and backtesting program: Amibroker. Data provider: Norgate Data

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