There are 3 big divergences right now that I think we want to keep a close eye on.
The first ones comes straight from Papa Dow.
We’re looking at a classic Dow Theory Divergence between the Dow Jones Industrial Average and Dow Jones Transportation Average.
We’ve seen these sorts of things before major market tops. You saw it in 2000, you saw it in 2008, you saw it in 2015 and you saw it in 2020.
In this particular case, you’re seeing new highs from the Dow Industrials but lower highs in the Transports: [Read more…]