Thursday, August 20, 2009

Looking for Divergences

Heck, IBD has the market in correction, and here we are near the bull market highs. IBD may be right. The correction may have started and we're just retesting previous highs. If so, then it's time to look to see if there are divergences in MACD, volume, etc. And there are.

As you can see, the MACD and volume are trending down as the market is making an attempt at the recent highs. As is the RSI. I wouldn't blame anyone, even myself, for lowering beta here. My hunch is that IBD is correct.

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