Notable RSI Divergences

Macro Leadership Through Technical Signals

May 28 - May 28

Applying relative strength and intermarket signals across fixed income, currencies, and commodities

Markets are sending important signals, but not always in the places investors first expect. As leadership shifts across rates, currencies, commodities, and commodity-linked equities, understanding how to read those moves has become increasingly important for portfolio positioning and risk management.

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Notable RSI Divergences

Published on 04/10/2026

Source: Market Mosaic Daily, by CMT Association

Relative strength index (RSI) bullish divergences.

Sections

Magnificent 7 vs. S&P 500
MSCI China Index
S&P Retail

Magnificent 7 vs. S&P 500

Today’s post will focus on relative strength index (RSI) bullish divergences. First up is the Magnificent 7 (MAGS) vs. S&P 500 (SPY) price ratio. Despite the ratio forming a new low in March, the 14-day RSI formed a higher low. This divergence tells us that bearish momentum is weakening. Is the Mag7 poised for a move higher?

MSCI China Index

Next up is the MSCI China Index (MCHI). The daily price chart formed new lows in March, but bearish momentum is fading, as the RSI formed higher lows. To couple this divergence, MCHI sits atop a well-tested support-resistance zone. This additional datapoint makes the RSI divergence all the more interesting.

S&P Retail

Last but certainly not least is S&P Retail (XRT). Same scenario – price formed a new low, RSI did not. In fact, RSI is already back above 50 and well into neutral territory. This is all happening at recent support, formed by the November 2025 low. If retail stocks are starting to work, it bodes well for the health of the broad market.

Shared content and posted charts are intended to be used for informational and educational purposes only. CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. CMT Association does not accept liability for any financial loss or damage our audience may incur.

About the Author | Shane C. Murphy, CMT, CFP

Shane Murphy is an Associate at Michael Roberts Associates Inc. an independent wealth management firm located in Syracuse, NY. Prior to that, Shane worked in portfolio construction and research for an independent RIA. He also has experience in municipal finance, working at an independent municipal advisory firm. Shane attended Le Moyne College in Syracuse, NY, graduating honors cum laude with a Bachelor of Science degree in Finance and Business Analytics. Shane holds a Masters of Business Administration with a specialization in business analytics from Le Moyne College. He holds his Series 7 and 66 FINRA licenses and has received the designation of Chartered Market Technician (CMT) . In his spare time, Shane enjoys being out on the golf course, exercising and spending time with his family.