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Jim Wyckoff

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S&P Futures Showing Bearish Divergence with DMI Study

January 18, 2018 by Jim Wyckoff

The S&P stock index futures this week hit another record high. There are no early, strong technical clues that a market top is close at hand. However, nobody can argue this is a very mature bull market run. There is bearish technical divergence showing up on the Directional Movement Index (DMI). See on the daily bar chart for the March S&P futures that the blue ADX line hit a new high recently, but then turned down while at the same time the S&P index went on to post a new high. This is called bearish divergence and is what I would call a minor technical signal of a potential market top being in place. Stay tuned!–Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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