The S&P 500 has diverged to a record level away from the 100 day MA. I expect a correction is imminent back to 1,600 to re-couple with the 100 day. If the correction does not come soon, there is a high chance that the market could break down through the 100 like it did at the end of 2007 due to the GFC and lead to a very major reversal. There was a break below the 100 MA in 2011 after a very wide divergence, but more QE managed to push the market back up over the 100 MA. If it happens again there may not be enough QE money printing to stop it this time.
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