Dow Jones Industrial Average, S&P 500 Really Showing Signs of Weakness

This type of negative divergence does not necessarily mean that the S&P 500 has to drop, but it is a worrisome indicator that, to me, is indicative of the very real possibility that market sentiment and momentum is beginning to shift away from the bullish camp.

Unless we begin to see some growth in both revenues and income soon—which needs to come from higher wages in addition to accelerating jobs growth that prompts consumer spending—I think it will be increasingly difficult for companies to increase revenues going forward.

This article is brought to you courtesy of Sasha Cekerevac from Investment Contrarians.

Related: SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), SPDR S&P 500 ETF Trust (NYSEARCA:SPY).

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