Skip to main content

Bruce Kamich Sees Bearish Divergence in the Stock Market

TheStreet's in-house technical analyst Bruce Kamich sees a bearish divergence in the stock market.

TheStreet's in-house technical analyst Bruce Kamich sees a bearish divergence in the stock market. While both the Dow Industrials and S&P 500 are approaching their record highs, Kamich sees a warning sign with the market's internals. In looking at the cumulative Advance-Decline line, Kamich noted the AD line has peaked. Kamich said it's possible that the major averages will hit new highs while the AD line does not. He writes in a Real Money article that 'this bearish divergence is a likely to be a wake-up call to cull out weaker stocks in your portfolio and get more defensive by year-end.’ Kamich also writes that 'often near the end of a bull market one can see the large well-known stocks continue to rise while smaller names fall by the wayside.'

TheStreet Recommends