Strategy Central

[Walkingshadow]

Here's a chart of the COMPQ vs. the COMPQ BPI. Looks quite a bit different than the NDX BPI chart you posted.

I don't see significant evidence here of bearish divergence at all. Furthermore, using the same settings for the technical indicators, the BPI significantly lags the index, as you can see from some of the blue lines and red circles I penciled in.

I don't want to get into posting a zillion charts or anything, but I really don't see the case for bearish divergence of a magnitude and type required to make a case for an impending major correction. And believe me, I would love to see that happen, it would really make life easier.