# Positive Divergence?

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Hey, Ross here:

On the surface, we’ve seemed to run straight into another pullback.

But as I showed you yesterday, there’s also a rotation happening beneath the market.

For instance, although the S&P 500 fell by over 1% yesterday…

More than 50% of stocks in the index still advanced.

Plus, take a look at today’s chart.

**Chart of the Day**

![](https://stocksurgedaily.com/wp-content/uploads/2025/12/image-28-1024x411.png)

Despite the market dipping for the past few days, we’re still seeing more new highs than new lows.

That’s because a lot of the impact is being felt in the tech sector – which is where the biggest names are.

Case in point, the tech sector ETF – XLK – has dipped in the past five consecutive trading sessions.

That’s its worst 5-day performance since the April lows…

![](https://stocksurgedaily.com/wp-content/uploads/2025/12/image-27-1024x671.png)

So it’s no surprise we’re seeing the impact in the indexes.

And because of this, the tech sector is also seeing the largest contraction in valuations…

![](https://stocksurgedaily.com/wp-content/uploads/2025/12/image-29-1024x614.png)

_Source: @Duality Research via X_

Which given how frothy things have gotten this year, is actually a good thing.

And there’s one more thing you might not have noticed about this chart.

I explain it below.

**Insight of the Day**

**The tech sector is displaying positive divergence – with multiples contracting but earnings growing**

Here’s the last chart again.

![](https://stocksurgedaily.com/wp-content/uploads/2025/12/image-29-1024x614.png)

This time I want you to look at the second column of the chart above – EPS growth.

Look at the row for the tech sector.

See what I see?

Despite posting the largest contraction in valuation multiples…

Tech is also still posting the _strongest_ earnings growth of all the sectors at over 30%.

In other words, the froth is being wiped off…

While underlying earnings are staying solid.

That’s a good thing, not a bad thing. It’s a positive divergence.

And divergences always lead to opportunity.

That’s why **tomorrow, Friday December 19 at 1 p.m. Eastern…**

I’m going LIVE for a FREE presentation on how to take maximum advantage of this divergence.

It involves a group of traders who are uniquely positioned to make a killing off of similar divergences… 

Which is why following their trades could have led to stock gains like 115% in less than 60 days…

168% in five months… 

234% in eight weeks…

And even 1,787% in just two years. 

I’ll break everything down tomorrow afternoon.

But what you need to do now is block off your calendar…

And **[click here to secure your seat for my free live walkthrough.](https://secure.tradersagency.com/insider/?tambid=33084&id=TA33262)**

I’ll see you Friday afternoon at 1 p.m. ET.

**_P.S._** _If you’re planning to attend on a mobile device, make sure you download the presentation app now so you don’t miss anything when it starts. See you there._

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Embrace the surge,

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**Ross Givens**  
Editor, Stock Surge Daily