26 August 2009 – High Alert

ASX Commentary

26 August 2009 – High Alert

Thu, Aug 27, 2009

We now go onto high alert as we have several divergences occurring over various technical fronts. We’ve discussed the standard divergence we always use and we’ve touched on the momentum divergence. We also now have significant divergence occurring with regard to the Dow Jones Industrials and Dow Jones Transports. Last night the Industrials managed to rise +0.04% whilst the transports dropped -1.49%. The last time we saw this the market dropped some 10%. Extreme caution required.

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Nick Radge - who has written 894 posts on The Chartist.

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