Negative Divergences: Big Warning For Equity Investors
Investors know that since the COVID crash, the equity trade has been very bifurcated between the “haves” and the “have nots”. The former has included big cap growth stocks, including most tech sectors, as well as some retail, biotech, homebuilders and materials (miners notably). The latter have been the value stocks, including financials and energy.
After this past week, during which we may have seen the first signs of the big growth trade falter, the charts are sending a very reliable warning signal. Technicians use various “oscillators” which