Wednesday, November 22, 2006

Short-term divergences beginning to lurk in daily market internals:


While daily market internals suggest continued upside for the longer term, current indicators are now suggesting a pullback of some sort is in the works. This chart displays the daily NYSE highs and lows along with the SPY's. As you can see from my highlights of previous divergences, new highs tend to peak (400 range) then diverge to lower levels.