Divergence

Something to watch going forward is the divergence that has started to occur between some of the major market indices.  I've shown above the difference between a few of the major asset classes and the Russell 2000 which is the small cap market index.  Those that watch money flows are concerned when you see these sort of divergences because it has often in the past signaled a market top or at least a period of market consolidation.  We'll continue to watch this in the "weight of the evidence" that is our our overall analysis.  It's not the only thing that matters but it is a component of the matrix that makes up our big picture view of things.

*Long ETFs related to the S&P 500, mid cap and small cap indices in client and personal accounts although positions can change at any time.