Market Leaves Trail of Minor Divergences

There has not been a lot of change in the market since Monday, but there are now some small, minor negative divergences. Thus far, they remain minor mostly because so far breadth has not rolled over and, as I explained the other day, if breadth is strong it is hard for the market to go down hard. And yes, I still expect we'll see some short-term volatility.

Let me start with the ratio of the Russell 2000 ETF (IWM) to the PowerShare QQQ (QQQ) . The Russell 2000 has been red (barely) for four of the last six trading days. Nasdaq has only been red once in the last 12 days so the ratio has fallen. And recall that when the ratio heads down, volatility tends to pick up....436 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.