Friday, October 14, 2011

SOX is Diverging from NDX - Again

Surprise, surprise. Non-confirmed (by SPX) NDX breakout is getting even more non-confirmed. SOX is now down. It has been the best, I repeat - The Best leading divergence indicator this year.

Open gaps below: 365.70 and 356.73

Stay tuned...

Update: Oct 14 @ 4 pm edt
I spoke too soon. No SOX reversal. Closed positive. Market is running all shorts out of town. This pullback is going to come soon. Just need to be patient. No need to buy highs, just like there was no reason to sell lows last week.


  1. so, you think the market is dropping from now on, or that is to early to say?

  2. Since there has been no close yet, it is hard to say. SOX has reversed back into positive as I type. But one has to monitor this development for a possible temporary end of this bull run.