I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Tuesday, January 11, 2011

Another Divergence

I was showing yesterday that there was a nascent divergence on the SPX/VIX (Breakdown?). That pattern is still intact. It made a lower high and a lower low and has not made a higher high yet.

Another indicator is also flashing some divergence: The percentage of stocks over their 50 day MA. This last peak on the SPX has seen less market participation with it compared to the last peak.

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