When you see a divergence between
the
CNX 500(Nifty
500) and the
SPX(S&P
500), you’re effectively looking at a breakdown in the historical
correlation between the broad Indian market and the U.S.
benchmark.
In a "risk-on" global environment, these
two indices typically move in tandem. When they decouple, it often
signals that internal pressures in one market are being masked by
the other, or that global liquidity is being pulled from emerging
markets.
Posted by mitchell on 24th of Apr 2026 at 10:09 am
Thanks, forgot about this ratio. Adds to list of current
divergences...somethings brewing. Whats concerning is this ratio
only diverges at much larger pullbacks...
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CNX500: SPX When you see a
Posted by EdZ on 24th of Apr 2026 at 09:05 am
CNX500: SPX
When you see a divergence between the CNX 500(Nifty 500) and the SPX(S&P 500), you’re effectively looking at a breakdown in the historical correlation between the broad Indian market and the U.S. benchmark.
In a "risk-on" global environment, these two indices typically move in tandem. When they decouple, it often signals that internal pressures in one market are being masked by the other, or that global liquidity is being pulled from emerging markets.
Thanks, forgot about this ratio.
Posted by mitchell on 24th of Apr 2026 at 10:09 am
Thanks, forgot about this ratio. Adds to list of current divergences...somethings brewing. Whats concerning is this ratio only diverges at much larger pullbacks...