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European Divergences

To my Critics I did not see the European indices making new highs even as the FTSE is now kissing the 7886 trendline from the 2015 highs. Time for some pushback. But what I am showing here is the DJ Euro stoxx 50 index in the top half of this chart and the FTSE in the lower half. Reason? An inter market divergence. The divergence between European stock markets shows up in the DJ Euro Stoxx not making a new high along with each new high top in the FTSE since 2015. Also the pink line shows divergences since Oct 2017. Long term divergences when they hold out are indicative of longer term trend reversals in the making. 

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