Market Participation Fades

The charts below were included in an NFTRH update last week and also for eLetter readers over the weekend.  I want to put them up here as well to give readers a view of a market that is losing sponsorship and being diverged negatively by several other beneath the surface indicators we track as well.

Does it mean the market must go down?  No, the Fed stands ready to perpetrate QE4 (ref. the Bullard Jawbone), the economy is still good, corporate earnings are still good and the November-April seasonal pattern is in play.  It’s all good!  And that could be part of the problem.  Note similar divergence to the lead-in to October’s correction.

ndx.part

oex.part

spx.part

indu.part