BUZZ-S&P 500 vs. 200-WMA Disparity similar to 2007 market peak
10:50 AM ET, 08/07/2015 - Reuters
** S&P 500 remains rangy, but charts flashing same warning as developed with the 2007 market peak. Chart: http://link.reuters.com/muz35w
** While SPX advanced into late 2007, the 200-WMA Disparity study had peaked 5 months earlier and then diverged failing to confirm the Oct market high
** Study then subsequently violated multi-year support line in breakdown which ultimately led to a bear market
** More recent action showing similar divergence, although has been in force longer
** Disparity peaked in summer 2014 while SPX went on to make higher highs into its May 2015 peak
** Subsequently, study has violated similarly sloped multi-year support line as in 2007
** This does not rule out another SPX push to marginal new high above 2134.72 first, but disparity should fail to confirm the push
** Bottoming VIX and deteriorating market internals add to developing bearish picture
** SPX showing a meager gain of just 1 pct YTD having made little progress in over 7 months
** Support is at 2063 then 2044 ahead of the key 4-year trend line rising to 2010 next week (Messaging: terence.gabriel.thomsonreuters.com@reuters.net)
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