• 759 days Will The ECB Continue To Hike Rates?
  • 759 days Forbes: Aramco Remains Largest Company In The Middle East
  • 761 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,161 days Could Crypto Overtake Traditional Investment?
  • 1,166 days Americans Still Quitting Jobs At Record Pace
  • 1,168 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,171 days Is The Dollar Too Strong?
  • 1,171 days Big Tech Disappoints Investors on Earnings Calls
  • 1,172 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,174 days China Is Quietly Trying To Distance Itself From Russia
  • 1,174 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,178 days Crypto Investors Won Big In 2021
  • 1,178 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,179 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,181 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,182 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,185 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,186 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,186 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,188 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Be Aware of Negative Divergences ...

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.

 

Back to homepage

Leave a comment

Leave a comment