alice, nftrh

NFTRH; Market Divergences

Now that we are all giddy and bulled up (with SPX nearly touching the 2060 resistance zone), how about we review some more underpinnings that are less than stellar (joining the fading participation noted in this morning’s update).

Junk bonds are not keeping up.

hyg

Junk vs. Investment Grade and Treasury are not keeping up.

hyg.lqd.tlt

Small Caps are not keeping up.

rut

And to top it all off, the biggest part of the global rally is sparked by Mr. Draghi’s jawbone.  It does not sound like a healthy underpinning.  Have caution from this point on.  We are after all in the meat of the bounce target zones.