Corey Rosenbloom: We’re seeing a familiar Hollywood script play out with price chugging to new highs as internals, volume, and momentum run the other way.
While this isn’t a panic signal, let’s at least highlight the extended divergences and “fumes” that continue to accompany a market creeping its way higher.
We’re seeing the S&P 500 Index stair-step its way through all-time highs (top chart) as Breadth ($ADD) and TICK – key Market Internals that reveal what’s going on behind the price – stairstep their way down.
It’s a classic “non-confirmation” or negative divergence between price and Market Internals (and the same is true with volume and momentum oscillators).
Once again, no this does not scream “run and hide and sell everything short” but it should give bulls/buyers a pause before leveraging their account long as they buy the news that stocks are at all-time highs.