Be Aware of Negative Divergences ...

By: Marty Chenard | Tue, Sep 22, 2009
Print Email

Last week, I spoke about Divergences and their importance.

Some technicians use a 30 day Momentum indicator in order to spot divergences. Although it is not one of my favorites, it does offer a divergence warning for investors.

For example, look at today's NYA Index plotted against a 30 Day Momentum indicator.

In May and June, it was clear that the NYA had a Negative Divergence with its 30 day momentum. The divergence continued on until the momentum indicator fell below its support line ... and that was the indication that the NYA Index would have a pull back.

So, now we are seeing another such divergence building for August and September. The divergence is increasing, but the Momentum Indicator is still holding above its support. Keep an eye on this indicator, for when it breaks support, the NYA will pull back.



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker. is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2017 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright ©