Equities

Nasdaq vs. 200 DMA bearish signal

Negative divergence between the Nasdaq and the % distance from its 200-day moving average is replicating the pattern seen in 2007 before 25% fall in the index, says Riccardo Ronco at Aviate Global. 4300 remains the key support level for the Nasdaq in the face of falling market breadth.

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.