🟥 Divergence on NAS vs Stocks above 200D - caution

I have spoken about this since begining of the year but now it materializes nicely.
The market has never survived narrow niche rallies and this has never been the characteristic of a bull market.

As you see the Nasdaq Composite has started to pull as the percent of stocks above their respective 200 D Moving average is well below 40%. To be confident that we are really oversold I would like to see the VIX go to above 25 on this pullback.

Caution is advised.