On 06/13/24 the Nasdaq Composite (IXIC) made a new all-time high unconfirmed by the S&P 500 (SPX) and the Dow Jones Industrial Average (DJI). A bearish “Rule of the Majority” signal. This signal may not last very long because by the end of the 06/13/24 main session both indices were only slightly below their new all-time highs.
The more fascinating relationship is between IXIC and DJI. The one – hour IXIC and DJI chart courtesy of Trading View shows what’s been happening.
The thirty DJI stocks are considered the highest quality stocks – the bluest of the blue chips, yet they are lagging. The 06/12/24 blog “The Incredible Shrinking U.S. Stock Market” illustrated the shocking bearish divergence between the IXIC and Nasdaq Composite – 52 – week highs.
The DJI and IXIC divergence shows a widespread and potentially growing bear market. For the moment a small group of stocks primarily in the Technology area are pushing the SPX and IXIC higher.
All bull trends eventually end, and typically hurt those with a myopic view.
Four Dimension Trading 