These Two Diverging Stock Indexes Could be a Red Flag for the Markets

Although both the S&P 500 and Nasdaq Composite recently set fresh records, there is potential for a stock market pullback in the near term. CFRA’s Chief Investment Strategist Sam Stovall explains how the Dow Jones Transportation Average has diverged from the Dow Jones Industrials. This drop in correlation could be a red flag and may be a signal for a pullback or even a correction increase.

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