Dow Jones Industrial Average/S&P 500 Index Divergence

Description: The relative movement between the Dow Jones Industrial Average and the S&P 500 Index.

Scenario: A positive divergence indicates the prices of Dow Jones stocks are changing more than the prices of S&P 500 stocks. This suggest a lack of support for overall market and is bearish. A neutral divergence indicates prices of both indexes are changing at the same rate. This suggests broad market support and is bullish. A strongly negative divergence indicates prices of S&P 500 stocks are changing more than the prices of Dow Jones stocks. This suggests speculation and is bearish.

BullandBearWise Index Weight: 2 (Medium)

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