Some technicians use a 30 day Momentum indicator in order to spot divergences. Although it is not one of my favorites, it does offer a divergence warning for investors.

For example, look at today's NYA Index plotted against a 30 Day Momentum indicator.

In May and June, it was clear that the NYA had a Negative Divergence with its 30 day momentum. The divergence continued on until the momentum indicator fell below its support line ... and that was the indication that the NYA Index would have a pull back.

So, now we are seeing another such divergence building for August and September. The divergence is increasing, but the Momentum Indicator is still holding above its support. Keep an eye on this indicator, for when it breaks support, the NYA will pull back.

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By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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