The Capitalized NHNL blew up its bearish divergence the other day, but all of the other ones are still intact. Even though the market has moved higher, participation in the rally continues to shrink.
The Net NHNL is negative.
The rolling 52 week high is also decreasing.
This is normally seen around market tops. We would have already seen a pullback by now if it was not for the AI trade. That bubble continues to grow. NVDA was up over 4% today. A pull back in the next few days seems likely. The larger pullback I am hoping to see is an ever growing possibility. Especially if participation continues to slow. It is a tale of two markets. AI and everyone else!
