I came across an interesting post from J.C. Parets from All Star Charts today regarding a divergence currently occurring in the market. As you know, I like to keep a close eye on divergences so I naturally found this quite interesting. At the moment I’m torn between the bullish and bearish camp. On one side we’re in a clear uptrend and the fundamental picture is solid, but on the other side we have just had a massive rally and the technical indicators are beginning to roll over.
J.C. pointed out that there is has been a divergence occurring recently where the S&P 500 was moving to new highs, but the number of individual stocks breaking out to new highs was decreasing. Interesting stuff. I’m not sure if it clears up the bigger picture for me, but it was interesting and worth sharing with you.
The other post I read today that was noteworthy was this look at historical S&P cycles dating back to 1928. Sometimes we get caught up in daily movements you forget the bigger picture. I do love a good chart and these ones were particularly thought provoking.
Enjoy the read.