Negative Divergences

We now have negative divergences in the DIA, QQQQ and SPY as well as XLF (driving the S&P) and SMH (driving the NASDAQ).

What this means is that the gaps that have been filled or nearly filled in the Dow-30 (MCD is weighing heavy on the Dow) are seeing profit taking into the filling of the gap. This may be because the Chinese rate hike came as a surprise and left the locals with inventory at higher levels that they need to dispose of.