SPX, European Stocks and Junk Bonds Continue to Diverge

Jon Alternative Media, Economy, Fiscal Policies, Government, Market Commentary, Technical Analysis

Non-Confirmations Still Persist The S&P 500 has recently made a new high, in short the rebound from the mid October low has not failed at a lower high. Therefore, the clock has so to speak been reset. However, as our updated comparison chart between SPX and the major euro-land indexes shows, there is now a third divergence in place between them, and this one is even more glaring than the first two. Keep in mind that there such divergences have not always been meaningful in the past. However, when global markets are drifting apart, it is a sign that the global economy is no longer well-synchronized. Given that the Fed’s ‘QE inf.’ is in relative pause mode (we hesitate to say it has ended), the situation is certainly worth keeping an eye on.

This post was published at Acting-Man on November 4, 2014.