Don't Ignore This Chart!

Divergences fail to deter the Dow

Despite numerous bearish divergences in MACD since August, the Dow continues pushing to new highs. With today's close above 10500, the Dow hit another 52-week closing high today. While there will likely be a bearish divergence when the trend finally ends, it is clear that a strong uptrend trumps most bearish divergences.

091215indu Click this chart for details
Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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