These Rotations and Divergences Scream “Volatility Ahead!”

[video_player type=”embed” style=”1″ dimensions=”640×360″ width=”640″ height=”360″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]PGlmcmFtZSB3aWR0aD0iNjQwIiBoZWlnaHQ9IjM2MCIgc3JjPSJodHRwczovL3d3dy55b3V0dWJlLW5vY29va2llLmNvbS9lbWJlZC9RazJ6WkJnUUtHMD9zaT15WFFMeU85QW1KRDNjWjJLIiB0aXRsZT0iWW91VHViZSB2aWRlbyBwbGF5ZXIiIGZyYW1lYm9yZGVyPSIwIiBhbGxvdz0iYWNjZWxlcm9tZXRlcjsgYXV0b3BsYXk7IGNsaXBib2FyZC13cml0ZTsgZW5jcnlwdGVkLW1lZGlhOyBneXJvc2NvcGU7IHBpY3R1cmUtaW4tcGljdHVyZTsgd2ViLXNoYXJlIiByZWZlcnJlcnBvbGljeT0ic3RyaWN0LW9yaWdpbi13aGVuLWNyb3NzLW9yaWdpbiIgYWxsb3dmdWxsc2NyZWVuPSIiPjwvaWZyYW1lPg==[/video_player]

I’m traveling today, back to the island, with a loooong layover in Miami. 

Fitting after a week like this. IN/OUT just closed out its eighth winner, but the markets closed out a short week-long losing streak that somehow managed to feel even longer. Of course, it caps a month of 4% to 6% gains for both indexes, but I won’t be awarding any style points.

Normally, I could care less about what happens on the Dow Industrials – for traders, the one to watch is the S&P 500.

But… when there’s smoke… when there’s excitement brewing… I’ve got to keep my eye on it. And that’s what’s happening right now. The Dow and the S&P 500 are actually diverging right now…

Not only that, but there are significant rotations playing out right now, which we’ll get into. 

Like I said, divergence and rotation means we could be in for some chop in the sessions ahead. 

Here’s what that means – and what to do about it…

More from TheoTrade

Why The Countdown Just Started

The COVID Lesson Memory Stocks Are About To Repeat

Why Monday’s 100-Point Rally Has My Spidey Senses Up

Check This Number Before Your First Trade

How One Trade Moved Everything

Tuesday, September 22, 2026 – Tony’s Pre-Market Playbook


Most Recent

Why The Countdown Just Started
The COVID Lesson Memory Stocks Are About To Repeat
Why Monday’s 100-Point Rally Has My Spidey Senses Up
Check This Number Before Your First Trade
How One Trade Moved Everything

Get educational market insights sent right to your inbox.

As Seen In