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View Full Version : Does Anyone Else See A Divergence in RT 20 DMF & IWM Price?



Riskslayer
02-14-2012, 12:20 PM
Since Feb 8 around noon ET; the RT 20 DMF has been grinding higher.. IWM has been generally trending down during this period; Especially since yesterday (Feb 13) mid-morning until right now this divergence, to me, seems even more pronounced?

I guess classical divergence theory would suggest a resolution in price to the MF.

Shawn

EB
02-14-2012, 12:53 PM
Since Feb 8 around noon ET; the RT 20 DMF has been grinding higher.. IWM has been generally trending down during this period; Especially since yesterday (Feb 13) mid-morning until right now this divergence, to me, seems even more pronounced?

I guess classical divergence theory would suggest a resolution in price to the MF.

Shawn

I had just written a similar comment in the emini forum, but not covering as long a time frame. Might it be sector rotation now that we're at important long term inflection areas for many of the major indexes?

http://blog.afraidtotrade.com/triple-us-stock-market-check-into-the-zone

brrim
02-14-2012, 02:54 PM
Looking at the 20 DMF for IWM it looks as if RT MF peaked on 1/25 at over 0.80% and can't get by 0.6% ever since where it looks as if we have at least a quadruple top. The uptrendline from late January looks as if it will break at around 0.38%. This looks like bearish behavior in terms of MF.

Best regards,
Robert