Divergences and Nonconfirmations Provide Warnings

The evolution of a top can only described as a process. Divergences and nonconfirmations tend to provide warnings before the breaks.

Chicago Fed National Activity Index (CNFAI) and S&P 500 Average


Economic Activity Slower in January

Led by declines in production-related indicators, the Chicago Fed National Activity Index decreased to –0.16 in January from +0.18 in December. Three of the four broad categories of indicators that make up the index made positive contributions in January, but they were offset by continued weakness in the consumption and housing category.

Source: chicagofed.org