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Understanding Stock and Index Divergences In Market Direction Analysis – Investor Questions

Jun 7, 2015 | Investor Questions, Stock Market Outlook

On my Yahoo Forum an investor wondered about stock and index divergences when it comes to following the overall market direction. Let’s take a look at her question and a few answers.

Investor Questions

Hi Teddi,

The S&P500 sure looks a bit vulnerable at the moment BUT I’m seeing the Russell 2000 hold up well and a triangle breakout on Fedex no less.

Does this kind of divergence speak to you at all at time like these?  Mary.

Stock Divergences

When markets are caught in a moderate pullback studying individual stocks or sector specific indexes can assist in understanding overall market direction changes and trends. The rest of this article is for FullyInformed Members.

Understanding Stock and Index Divergences In Market Direction Analysis – Investor Questions

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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