Before the S&P peaked in 2007, Home Construction, Banks and Real Estate started creating a series of lower highs, diverging with the S&P.
Joe Friday Just The Facts Ma’am– Divergences similar to 2007 are taking place of late.
The long-term trend for each of these Stock indices reams up at this time! Stock market bulls hope that it’s different this time and that these divergences are just noise.
The SPDR KBW Bank ETF (KBE) closed at $46.57 on Friday, down $-0.26 (-0.56%). Year-to-date, KBE has declined -1.32%, versus a 9.38% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.