Doug Kass Says This Divergence Is A Big 'Warning Sign'

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Wednesday, February 22, 2012 Doug Kass Says This Divergence Is A Big 'Warning Sign' Everyone keeps wondering when this Teflon market is finally going to crack. Here's one chart, via Doug Kass, that more and more people are paying attention to. It's the S&P 500 (red line) vs. the ratio of the Dow Transports vs. the S&P 500 (blue line). The idea among some "Dow Theorists" is that when the Transports get very weak (relatively) it's a sign that the market as a whole is doomed to fall. It is pretty stark the gap that's opened up this year. At a minimum it at least shows that some parts of the market are getting roughed up by the rise in oil prices.  Read » Also On Money Game Today: THE IDIOT-MAKER RALLY: A Monster Market Surge Is Making These Folks Look Like Fools OMG: Here's How Religion Is Tied To Stock Price Crash Risk The Collapse Of US Manufacturing Is Centered On One Sector When Paying Attention To Fundamentals Can Be Deadly Advertisement CHART OF THE DAY: The Rosy Assumptions Behind The Entire Greek Bailout CHART OF THE DAY: All Of The Economic Sentiment Indicators In One Index CHART OF THE DAY: All Of The Stock Market Sentiment Indicators Combined Into One Index Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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