SPX RALLY and NYSE ADV-DEC LINE showing MASSIVE DIVERGENCE !
Following from my last two posts tonight (see links below) on the Elliot wave counts and divergence with CBOE Total Put-to-Call Ratios.
This chart shows as the S&P Cash Index has rallied since the March lows each push upwards is accompanied by weaker and weaker breadth as the NYSE Advance-Decline Line keeps making lower highs.
This is NOT the sign of an impulsive move higher about to make all-time-new-highs.
In an impulsive move, we expect the 3rd wave to be the strongest most impulsive move with breadth rising as compared to wave 1 and then wave 5 showing a bearish divergence with highs and Advance-Decline making lower highs.
Instead we see the strongest Adv-Dec points were early on in the rally and have been getting weaker and weaker as the rally has progressed.
Fewer and fewer big tech names are what have been powering the S&P higher with less and less participation by the other S&P components.
This is not a sign of a healthy new bull market rally but is a classic symptom of a poor bear market rally.
The generals are leading but the soldiers are not following.
This indicates the rally has limited time left and I believe its time is possibly up as of today.
Cheers!
Cyrus
See below links to my previous posts tonight.
This chart shows as the S&P Cash Index has rallied since the March lows each push upwards is accompanied by weaker and weaker breadth as the NYSE Advance-Decline Line keeps making lower highs.
This is NOT the sign of an impulsive move higher about to make all-time-new-highs.
In an impulsive move, we expect the 3rd wave to be the strongest most impulsive move with breadth rising as compared to wave 1 and then wave 5 showing a bearish divergence with highs and Advance-Decline making lower highs.
Instead we see the strongest Adv-Dec points were early on in the rally and have been getting weaker and weaker as the rally has progressed.
Fewer and fewer big tech names are what have been powering the S&P higher with less and less participation by the other S&P components.
This is not a sign of a healthy new bull market rally but is a classic symptom of a poor bear market rally.
The generals are leading but the soldiers are not following.
This indicates the rally has limited time left and I believe its time is possibly up as of today.
Cheers!
Cyrus
See below links to my previous posts tonight.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.