Tweet By Poly The divergences across the equity markets are everywhere now, and this was exactly the type of environment I expected to see this late in the Cycle.  The small-cap Russell index has broken down completely and some of the leading sectors like the financial, home builders, and consumer discretionary have led the markets […]

Tweet Reader question: How long can the divergence in the DJT vs DJIA last? The QE3 put aside, I’ve never seen the Dow hold up this long with the transports doing so poorly, and don’t see them doing anything else but going lower, while the DOW hangs in. Is it because of last 2 days of quarter […]

Tweet My market message remains the same that given the amount of negative divergences going on behind the scenes, the markets need more of a correction that lasts longer than 4 hours before I’ll buy back on the long side.