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Saturday, December 11, 2010

More nascent divergences

The are a few divergences that are just starting to form: The Advance / Decline line and the New Highs / New Lows. Actually they NYHL has been showing divergence for a few months now but the NYAD kept making new highs. But with this last rally, that is not the case.

.... So will Monday and the rest of next week turn out to be very bullish and negate this potential divergence? Or are things really slowing down?

I think there is enough evidence to support the slowing down claim. Whether or not this will be enough slowing down to create a top remains to be seen.

I am still doubtful of a "major" decline while in the middle of Silly Season, but I am now becoming skeptical of a major bull run into the new year as well.

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