Oksana Koneva

Coppock Curve helps spot bearish divergences in S&P 500, Yuriy Matso explains

Coppock Curve helps spot bearish divergences in S&P 500, Yuriy Matso explains
Coppock Curve divergence at market peaks

Yuriy Matso highlights that the Coppock Curve, a 10-month weighted average of the S&P 500's 14- and 11-month rates of change, is often used to identify bearish divergences.

According to Matso, a bearish divergence arises when the index reaches a new high but the Coppock Curve does not follow suit. Historical examples include such divergences at the peaks in 2000 and 2007, though not every divergence precedes a bear market.

Matso has previously tracked key policy and commodity developments, noting the Federal Reserve's rate hike following a $130 move in Brent crude and the rise in real yields to their highest since 2008 in an earlier analysis. He has also examined the historical seasonality of September and its implications for financial markets in a separate report. These observations add context to his latest focus on technical signals in the S&P 500.

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