From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
Mixed signals have been the rule rather than the exception since the market peaked in early February.
The major stock indexes have continued to print record highs while breadth has deteriorated beneath the surface, creating several bearish divergences.
Some stocks have gone up and some stocks have gone down. But the reality is that most stocks have gone nowhere.
The same is true for commodities.
We’ve noticed pockets of strength in base metals, livestock, and softs. But the majority of commodities have remained range-bound since the beginning of May.
Even the bond market is flashing its fair share of mixed signals.
One that stands out in particular is the relationship between the US 3s10s and the Regional Banks $KRE relative to the S&P 500 $SPY. [Read more…]