Shares of Walt Disney (DIS) have been strongly correlated to the S&P 500 since the 2009 low. There have been periods of dislocation, of course, and the stock and the index are currently in one of those periods. Disney shares have been making lower highs above their 50 day moving average this month, while the S&P 500 index continues to track higher. The price action has formed a triangle pattern above the flat moving average. The integrity of this support line will determine if Disney is acting as a leading indicator or will rebound and catch-up to the index.
