While the nominal indexes struggle to hold an important ‘higher low’ on the recent downside theatrics, the ratio that has led the most intense phase of the bull – logically in tandem with rising long term yields (vs. ZIRP on the Fed Funds) – the Bank Index vs. SPX is still in its uptrend channel.

So if the markets do end up holding a higher low there is no negative divergence yet by this indicator.  FYI.