Yesterday's leading negative divergences were a clear warning...
Yesterday's leading negative divergence in the DIA, a recent relative negative divergence today.
The leader of risk on trades has looked the worst, this entire divergence has been leading negative while the Russell 2k has been range bound. We often find heavy distribution or accumulation in flat ranges.
The QQQ's leading negative divergence yesterday.
Intraday ES has been in a relative negative divergence all day, just like yesterday and now it is leading toward afternoon trade, just like yesterday.
The 4 hour 3C ES chart is now in the worst leading negative divergence and at the same area I have considered to be a sucker's/bear market rally. Note the volume as well in to the rally, the exact opposite of a healthy rally.
The SPY's leading negative divergence yesterday and a recent negative divergence today.
"IF" this gap remains left unfilled, which is very rare, I'd say only 5% of gaps are left unfilled recently, this will signal a bearish breakaway gap and will be of great consequence.
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