Now I wanted to show you some stuff I have been observing during last days: the divergences among various market internals indicators and price have been increasing telling us this rally is going out of steam.
Divergences can last long but traders should never go against them as risk/reward ratio would be poor.
If we were doctors, our prognosis for NASDAQ (and for the rest of indices) will be reserved. I mean, there is no evident symptoms yet but the disease is well underway.
Our therapy: Mr. NASDAQ and Mr. SPX must have some rest (retracement), they need an important breather if their expectations of going higher still exist.
