Divergence
Stock prices are up, yet internal indicators point to a loss of momentum.
1) MACD for example shows a lower-high in the current rebound. In July when it dipped below 0 the rebound was strong. This time the rebound post the November dip has been shallow.
2) Volume: There was a tepid pick-up in volume towards the end of last week, but the trend has been for less participation during this stock market rebound which is a clear divergence.
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EURUSD - The line in purple has been a clear trend follower since Euro's inception. It is getting close to the current price once again meaning that any correction may be larger in EURUSD than many market participants would be expecting. Potentially the reverse price action than what occurred in Dec. 2008.
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A closer look of EURUSD. At current 1.4460 is the line in the sand, but projecting forward a week or two would make 1.45 the pivot level.
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