{"id":75353,"date":"2025-07-27T00:46:39","date_gmt":"2025-07-27T07:46:39","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=75353"},"modified":"2025-07-27T00:46:40","modified_gmt":"2025-07-27T07:46:40","slug":"bearish-divergence-going-into-seasonally-weak-months-but-does-it-matter-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2025\/07\/27\/bearish-divergence-going-into-seasonally-weak-months-but-does-it-matter-the-market-breadth\/","title":{"rendered":"Bearish Divergence Going Into Seasonally Weak Months – But Does It Matter? – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

A bearish engulfing top pattern in the S&P 500 now seems like a distant memory. Yet, the melt-up in the stock market faces a new test. Just as the stock market enters its most dangerous months of the year<\/a> in terms of drawdowns, a bearish divergence has emerged with market breadth. What looked like a fresh breakout for market breadth quickly reverted into slippage away from the on-going uptrend for the major indices. Given the market remains well-supported and in bullish mode, I am not worrying about the bearish divergence…at least not until the emergence of a new technical indication of a top. I see no reason to make guesses projecting a top in the middle of a melt-up.<\/p>\n\n\n\n

Last week was full of a flurry of earnings news along with more trade and tariff news that the U.S. stock market largely ignored. Some traders were even too busy chasing the latest meme mania (hello DORK – DNUT, OPEN, RKT, and KSS) to notice the news. The rest of us are looking ahead to the upcoming Federal Reserve meeting and the likely questions Powell will get about more escalating tensions with the President<\/a> and his administration. The market expects no rate cut and sticky inflation news<\/a> has hopes fading for a September rate cut. Still, some dissent from the voting members, especially from Christopher Waller<\/a>, could add material intrigue to the meeting and questions from the press corps.<\/p>\n\n\n\n