Study: the stock market is forming a major medium term bullish divergence right now.

[Troy Bombardia]

There have been 8 historical cases in which this happened since 1950. All 8 cases saw the stock market go higher over the next few months

https://bullmarkets.co/study-the-stock-market-is-forming-a-bullish-divergence/

 

[QuasWexExort]

Umm SPX made HIGHER lows...why did the author draw a down arrow connecting higher lows ??

There is NO divergence if both the A/D and SPX made higher lows.

 

[OptionsOptionsOptions]

One word:

Earnings

 

[SunTrader]

Umm SPX made HIGHER lows...why did the author draw a down arrow connecting higher lows ??

There is NO divergence if both the A/D and SPX made higher lows.

Get your point but flat sideways movement against something else rising can still be considered divergence.

 

[QuasWexExort]

Get your point but flat sideways movement against something else rising can still be considered divergence.

It's hardly flat though..Blow up chart to same full scale as the A/D and it's a clear higher low. I guess this is where discretion comes in and some people will call it sideways to fit the bill.