Rosenberg: Stock Market Faces Reversal Risk as Key Indicators Fail to Confirm Rally
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The stock market's bull rally faces risk as 4 negative divergences suggest a potential reversal, according to economist David Rosenberg
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Negative divergence occurs when stock prices rise but an underlying technical indicator falls, failing to confirm the move
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Rosenberg highlighted divergences in Dow Theory, high-yield bonds, tech stocks, and high-beta stocks
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These indicators typically confirm a strong market by moving higher with stock prices
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Rosenberg warned "the longer these indicators fail to confirm, the more vulnerable the market and higher the reversal risk"