Market index divergence last 3 days

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The past 3 days in particular have been quite divergent among the big four indexes. The past month the only spot I can see where this happened was on Nov 3rd, and it quickly ironed itself out within a day. This one is at 3 days and counting. Healthy markets shouldn't have sustained divergences like this. A day here or there, fine, but this one is worth monitoring. QQQ and SPY doing well, IWM and DIA getting spanked.

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ملاحظة

It's worth noting that the Advance/Decline ratio was really bad as well. It seems all the lemmings are herding themselves back into the megacaps, at the expense of the Russell 2000.

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ملاحظة

The point of divergences is to show that something isn't right, and one can clearly see how this index divergence has played out a month later. While the indexes are no longer divergent, they've all fallen considerably.

The divergence between QQQ and IWM in particular illustrated a breakdown in market breadth. The small caps were getting hurt prior to QQQ...which is very top heavy in market capitalization. Since the Russell 2000 is a much better barometer of overall market health, it wasn't at all surprising to see that the underlying problems eventually spilled over into the other indexes.