Divergences abound

Divergences can remain divergent for long time. But longer they remain, the more they matter in the end. Current divergences are breaking some records in the market. Below are some examples:

Figure 1: Credit spread divergent from stocks.

Figure 2: Stock market breath is divergent.

Figure 3: US Leading indicator is divergent.

Figure 4: Materials are signaling global slowdown.

It is hard to find more glaring divergence in the market history. When the market turns down, the move will be violent.