|Simple Trading Ideas||
In my earlier post about three and a half weeks ago I pointed out that a divergence was developing. The S&P 500 was moving higher but the number of stocks above their 50-day SMA was moving lower. It means that fewer stocks participated in the price advance and more stocks crossed below the 50-day SMA in the S&P 500. S&P 500 was moving higher today too but $SPXA50R had only a lower high as you can see on the chart below. I will keep a close eye on this chart the next couple of weeks to see if $SPXA50R will plunge below 60%.