This is an abridged version of our Daily Report.
A near-record positive divergence
The S&P 500’s Advance/Decline Line is more than 5% above its high from January, showing that even as the index itself has struggled to hit a new high, a majority of stocks in the index have consistently climbed higher.
Such a big lead over the S&P price index itself led to higher prices every time.
A bad time for a new high
If the S&P does finally reach a new high, the calendar is a stumbling block. Out of all months, new highs in August led to the worst forward returns.
No other month saw such poor follow-through, more consistently than August.
After investors fled funds focused on equities outside the U.S., the MSCI World Index (excluding the U.S.) has now rallied for five straight days after hitting a 52-week low.
Coffee has been the most-hated contract for a while and along with sugar, pessimism is rampant. It’s soured so much now that the Optimism Index on coffee dropped to a lowly 10, one of the lowest readings seen among any contract in nearly 30 years.
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The post titled Record Positive Divergence As We Near An August High was originally published as on SentimenTrader.com on 2018-08-23.
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