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