In 35 years of history, this is only the third time that the
NYSE Composite Index was sitting at a 52-week high one day, and the
next day the Russell 2000 had fallen below both its 50-day and
200-day moving averages. The two precedents occurred on 3/12/99 and
11/1/07, which is disturbing as it preceded the last two bear
markets. It's tenuous (!) to place a lot of weight on a sample size
of two, though this is another warning that the divergences we've
been seeing lately have not had positive outcome
divergence sp to russell
Posted by wowten on 9th of May 2014 at 07:57 am
In 35 years of history, this is only the third time that the NYSE Composite Index was sitting at a 52-week high one day, and the next day the Russell 2000 had fallen below both its 50-day and 200-day moving averages. The two precedents occurred on 3/12/99 and 11/1/07, which is disturbing as it preceded the last two bear markets. It's tenuous (!) to place a lot of weight on a sample size of two, though this is another warning that the divergences we've been seeing lately have not had positive outcome
from Art Cashins commentary.
Wowten...thanks for sharing but since
Posted by steve on 9th of May 2014 at 10:59 am
Wowten...thanks for sharing but since the SPX topped in March of 2000 the first signal did not take hold until a year later.
Thank you
Posted by pjwhiteley on 9th of May 2014 at 10:07 am