For those looking for key market inflection points, BMO's Brad Wishak highlights a divergence that was a key tell for recent market action, and may portend even more pain in the coming weeks.
Accordng to Wishak, one place that telegraphed the recent market turmoil was the venerable New York Stock Exchange: the NYSE is the worlds largest stock exchange by market cap (21 trillion) yet "seems to get very little main stream attention for reasons I'll never understand."
And, Wishak adds, "when the largest stock exchange in the world throws up a few negative divergences, I want to listen" for the following three reasons:
- While the other major indices are hugging their 200 dma, the NYSE is firmly through it
- Additionally, the 2018 Channel trendline support broken
- But the biggest tell for me took place in September....while all the other majors were marking fresh all time highs, the largest exchange in the world wasn't even close to confirming ....this doesn't happen often.........another one for the radar