Today 1/10/17 the divergence between the SPX and NDX continued as the NDX and main Nasdaq Composite (IXIC) made new highs that were unconfirmed by SPX and DJIA.
This is a sign of thinning market breath. The situation is actually much more bearish if you drill down and examine new 52- week highs.
Nasdaq Composite new highs on 12/8/16 were 562
1/5/17 190
1/6 122
1/9 93
1/10 96
The higher the Nasdaq goes, less stocks are making new 52 - week highs.
The internal strength of the US stock market is very weak. There is a high probability a decline to at least the November 4th bottom could begin on 1/11/17
Mark
This is a sign of thinning market breath. The situation is actually much more bearish if you drill down and examine new 52- week highs.
Nasdaq Composite new highs on 12/8/16 were 562
1/5/17 190
1/6 122
1/9 93
1/10 96
The higher the Nasdaq goes, less stocks are making new 52 - week highs.
The internal strength of the US stock market is very weak. There is a high probability a decline to at least the November 4th bottom could begin on 1/11/17
Mark