Another Technical Divergence

Everyday we tally a measure called 1 quarter cumulative weekly net advances.  Here is how it works. Each week we calculate the number of stocks that advanced and the number of stocks that declined, and then we net out the result.  We then keep a running tally of those weekly net advances over 13 weeks, hence the name 1 quarter cumulative weekly net advances.  When momentum is rising, we generally see a rising figure, and when momentum is stalling, we see a falling figure.  The most interesting times are like what we are seeing now: falling cumulative net advances while index prices hold steady.  This is a technical divergence that general is a red flag for stocks.  Below we show the figures for the MSCI World index and each of the MSCI regional indexes.