==========Quote from futurecurrents:/coolweb
Well there is certainly a big divergence between the s&p and the naz on the daily since the new year.
How much divergence is sustainable? I would think the charts have got to come back together at some point here. Maybe these divergences among sectors is something to consider when applying otherwise mechanical trading methods.
Wish I knew ''how much divergence ''; its a business not easy now.
But using your time frame, intraday, from first of year,
amoung my favorites, end of day , from first of year;
plus 3 months charts, end of day.
SPY,DIA, oil/gas sector are notably bullish ,above 50 dma;
QQQQ/GOOG is notable more bearish, below 50 day moving average. Intraday/eod.
So while havent shorted GOOG lately ,like shorting earlier FEB, QQQQ still looks at best weak uptrend/or simply downtrend below 50 dma.
Prefer probabilities of
longs Oil/gas stocks,NYSE. Nice uptrends like DIA,SPY.