Aug. 4 at 8:23 PM
$SPY
Climbing higher while volatility signals weaken: a bearish divergence is developing.
$SPY continues to push upward despite weakness in
$SVIX and relative strength in
$VIX. This type of market divergence is rare and has often appeared near major turning points.
The previous time this pattern emerged, both
$SPY and
$SVIX experienced a difficult outcome afterward. These divergences do not predict the exact timing of a reversal, but they can signal that market internals are losing strength while prices continue to rise.
I recently shared with my members the structure behind this move and compared the current setup with the June 2nd market top, which occurred roughly 40 days apart.
The market always leaves clues. I track price action, liquidity, and sentiment. Follow my profile for more insights.
