While SPX is making new highs I am seeing divergences everywhere.
1. Price Volume Divergence:
2. Momentum divergence. Prices up but RSI down.
1. Price Volume Divergence:
3. SPX making new high but VIX not making lower low.
4. SPX making new high, but NYSE new highs are falling.
5. SPX making new high, DJ-Transport is diverging.
6. SPX making new high, copper moving down.
I can go on and on but somehow I think a correction is needed to rebalance the too stretched rubber band.
I know liquidity is strong and all Central Bankers are pumping in money, but even then!
Lets see tomorrow.
Thanks, bb. Good post. Maybe a high on Thursday at the new moon, around 1375-1380 SPX. Double top on AAPL at 525. I don't see a top this week.
ReplyDeleteCheck out around Feb OpEx last year and compare it to our current place. The 2010-11 QE2 push proved to be temporary and was fading about "now" even though it ran on until Jun11. I don't see much reason to think this Fed/ECB QE will be any more permanent.
ReplyDeleteNext week should be interesting. If we don't see a big woosh down Tuesday I'll reconsider but it seems to me like we've all been here before. Deja vu.
I agree with you. Next week should sure be interesting.
ReplyDelete