Indices Show Large Intermarket And Internal Divergences

Today was amazing to see price, especially in the S&P move to all-time highs, while breadth was negative. Volume is still not strong and the Russell is beginning to show more weakness, followed by the NASDAQ. If you look at the NASDAQ together with the Russell, the majority of stocks were trading lower as opposed to higher. This suggests the higher weighted stocks carried the rally today. That is unsustainable, unless there is something that happens to strengthen this rally internally. Unless or until that happens, use caution. The coming week is going to be very important.

Leave a Reply

Your email address will not be published. Required fields are marked *