FullyInformed.com
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Understanding Stock and Index Divergences In Market Direction Analysis – Investor Questions

Jun 7, 2015 | Investor Questions, Stock Market Outlook

On my Yahoo Forum an investor wondered about stock and index divergences when it comes to following the overall market direction. Let’s take a look at her question and a few answers.

Investor Questions

Hi Teddi,

The S&P500 sure looks a bit vulnerable at the moment BUT I’m seeing the Russell 2000 hold up well and a triangle breakout on Fedex no less.

Does this kind of divergence speak to you at all at time like these?  Mary.

Stock Divergences

When markets are caught in a moderate pullback studying individual stocks or sector specific indexes can assist in understanding overall market direction changes and trends. The rest of this article is for FullyInformed Members.

Understanding Stock and Index Divergences In Market Direction Analysis – Investor Questions

FullyInformed USA Members can review this strategy discussion article  directly through this link or they can sign in to the full site here. Non-members can join here or read about the benefits of a membership.


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

Internal Market Direction Links

Understanding The Market Direction Portfolio – Good Place To Start

Market Direction Portfolio Articles Listing

Market Direction Portfolio Trades for 2015

Market Direction Portfolio Trades for 2014

Market Direction Portfolio Trades for 2013

Market Direction Portfolio Trades for 2012

Profiting From Understanding Market Direction (Articles Index)

Market Timing Articles Index

How I Use Market Timing

Understanding Short-Term Signals

Various Market Timing Systems

Market Direction External Links

Market Direction

IWM ETF Russell 2000 Fund Info

Market Direction

SPY ETF 500 Fund Info

Recent Outlooks

Stock Market Outlook For Fri Jun 6 2025 – All About May Jobs Numbers

Prior Trading Day Summary: On Thu Jun 5 2025 stocks were primarily under selling pressure after coming within a point of reaching 6000 over the lunch hour. Arguments between President Trump and Elon Musk took center stage, holding investors focus …

Morning Investing Strategy Notes for Thu Jun 5 2025

For FullyInformed Members the morning Investing Strategy Notes for Thu Jun 5 2025 review the outlook the day ahead of May’s Non-Farm Payroll Numbers being released. Stocks discussed today include MongoDB Stock (MDB), PepsiCo Stock (PEP),  Microsoft Stock (MSFT), Broadcom …

Stock Market Outlook For Thu Jun 5 2025 – Weakness – Dips Likely – Still Bullish

Prior Trading Day Summary: On Wed Jun 4 2025 stocks opened lower as ADP numbers came in far below estimates which spooked investors. By the close, investors had regained Tuesday’s close. The SPX closed unchanged at 5971 on 4.8 billion …

Morning Investing Strategy Notes for Wed Jun 4 2025

For FullyInformed Members the morning Investing Strategy Notes for Wed Jun 4 2025 review the outlook for the remainder of the week. Stocks discussed today include NVIDIA Stock (NVDA), Wells Fargo Stock (WFC), SQQQ ETF, IWM ETF, Crowdstrike Stock (CRWD), …

Stock Market Outlook For Wed Jun 4 2025 – Mixed Outlook But Still Bullish

Prior Trading Day Summary: On Tue Jun 3 2025 stocks opened lower and spent the day rallying to once again end positive. The SPX rose 34 points to close at 5970. Volume jumped to 5.1 billion and new highs came …

Morning Investing Strategy Notes for Tue Jun 3 2025

For FullyInformed Members the morning Investing Strategy Notes for Mon Jun 2 2025 review the outlook for Tuesday following Monday’s late afternoon rally. Stocks discussed today include SQQQ ETF, IWM ETF, Apple Stock (AAPL), and more. The morning Investing Strategy …

Stock Market Outlook For Tue Jun 3 2025 – Weakness Continuing

Prior Trading Day Summary: On Monday stocks spent the day recovering from a morning sell-off and by the late afternoon it was up 24 points. The close saw the SPX at 5935. Volume was low at 4.9 billion shares but …

Morning Investing Strategy Notes for Mon Jun 2 2025

For FullyInformed Members the morning Investing Strategy Notes for Mon Jun 2 2025 review the outlook for June looking at past years as well as the current one. Stocks discussed today include SQQQ ETF, IWM ETF, Signet Jewelers Stock (SIG), …

Stock Market Outlook For Mon Jun 2 2025 – Weakness To Start June 2025

Prior Trading Day Summary: Stocks encountered some selling on the final day of trading in May which historically is common. The S&P ended the day down just half a point at 5911. Volume was higher by 2 billion shares with …

Morning Investing Strategy Notes for Fri May 30 2025

For FullyInformed Members the morning Investing Strategy Notes for Fri May 30 2025 look at the expected market action for the final trading day of May. Stocks discussed today include Costco Stock (COST), Dell Technologies Stock (DELL), Marvell Stock (MRVL), …

Stock Market Outlook For Fri May 30 2025 – Weakness – Dips Likely

Prior Trading Day Summary: Stocks had a choppy session on Thursday but managed a gain into the close. The SPX was up 23 points to 5912 on 4.6 billion shares traded. By the close,66% of stocks on New York were …

Morning Investing Strategy Notes for Thu May 29 2025

For FullyInformed Members the morning Investing Strategy Notes for Thu May 29 2025 look at the dip on Wednesday and whether this signals any change in market action and direction. Stocks discussed today include NVIDIA Stock (NVDA), Deckers Stock (DECK), …

Stock Market Outlook For Thu May 29 2025 – NVIDIA (NVDA) and Salesforce (CRM) Earnings Beat – Stocks Still Higher

Prior Trading Day Summary: Stocks slipped in the later afternoon on Wed May 28 2025 as the Trump administration reportedly stopped some US Chip designers and software makers to stop selling to China. As well home builders fell as the …

Morning Investing Strategy Notes for Wed May 28 2025

For FullyInformed Members the morning Investing Strategy Notes for Wed May 28 2025 look at the expectation for the rally to continue higher. Stocks discussed today include NVIDIA Stock (NVDA), Deckers Stock (DECK), Salesforce.com Stock (CRM), E.L.F. Beauty Stock (ELF), …

Subscribe For The Latest News