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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
[QUOTE=shawn_molodow;20532]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[/QUOTE]
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?
[URL="http://blog.afraidtotrade.com/triple-us-stock-market-check-into-the-zone"]http://blog.afraidtotrade.com/triple-us-stock-market-check-into-the-zone[/URL]
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