Weekly charts of $PX (top) vs. VT (Vanguard Total World Index - bottom) – fun fact
Generally they move in tandem but there are times when they do not. Just before pandemic sell off and the beginning of the current bear market, $SPX made a higher high but not by $VT (negative divergence), leading to a decline in $SPX
Now, the opposite is happening - VT made a higher high last week but not yet by SPX.
Is the divergence suggesting that a higher high is coming in SPX SPY?
Generally they move in tandem but there are times when they do not. Just before pandemic sell off and the beginning of the current bear market, $SPX made a higher high but not by $VT (negative divergence), leading to a decline in $SPX
Now, the opposite is happening - VT made a higher high last week but not yet by SPX.
Is the divergence suggesting that a higher high is coming in SPX SPY?