Bearish S&P500 divergence vs. Consumers

This year’s divergence between the S&P500 Consumer Discretionary Index and the main S&P500 index is a bearish signal for stocks, according to Riccardo Ronco at Aviate Global. Such a divergence also took place in 2000 and 2007 and suggests the main index is anticipating a decline in consumer activity.

Retail sector a red flag for S&P500

Divergence between the S&P500 and the retail sector within it is a red flag that the market may be nearing a top, says Riccardo Ronco at Aviate Global. Although the trend in the overall market remains bullish for the present, the 52-week % spread of retail/S&P has fallen sharply since the start of the year.