A/D Ratio Divergence
2:15pm EDT: Despite new highs in all four equity food groups (i.e. NDX, SPX, DJI, and RUT) that NYSE A/D ratio divergence I keep pointing out has continued:
I’m not going to get my hopes up but felt it was important to point it out to you rats.
As mentioned on the chart – this is how low she can go – we need to see a pop higher now otherwise that ending diagonal (i.e. wedge in traditional TA) is probably bust and we’ll count it as a regular 5th wave down. I know it’s academic on the surface – however, the key difference is that ending diagonals are usually followed by quite dramatic reversals as they are considered ‘exhaustion patterns’.
3:48pm EDT: Trannies are nearing a spot where I’d be tempted to go short: