- The Russell 2000 is well off its highs.
- Momentum is waning. The last two highs have occurred with lower overbought readings.
- Market leaders like semiconductors and financials are not making new highs while the major averages are.
Getting Technical
The technical term for what I mentioned in my last post is divergences. Divergences tend to lead to market tops. While the major averages are doing well, the average stock is not. Among the divergences are:
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2 comments:
I own micro small caps. Under 50 mln MC and they are getting hammered for lack of a better word this week.
I should have just stopped trading for a while, but my greed causes me to give a little back to the mkt. Boo hoo.
Also see negative divergence with the market at news highs and the MACD and MACD histogram not confriming
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