Thursday, February 16, 2012

Divergences Everywhere.

While SPX is making new highs I am seeing divergences everywhere.
1. Price Volume Divergence:
 2. Momentum divergence. Prices up but RSI down.
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.