Bearish SMT Divergence at ATHs Signals Potential Reversal

TRIGGER TRADES
12-12 11:43

We’ve got a bearish SMT divergence at all-time highs: $Dow Jones(.DJI)$ just printed a new high while $S&P 500(.SPX)$ and $NASDAQ 100(NDX)$ did not.

This kind of desynchronization is classic topping behavior.

SPX can still stretch to fresh ATHs, but my lean is that NDX fails to confirm, preserving the divergence and setting the stage for a bearish reversal.

$SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2512(ESmain)$ $E-mini Nasdaq 100 - main 2512(NQmain)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$

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