Two things we’ve been pointing to this week are the potential failed breakouts in Small-caps and Micro-cap stocks, which would confirm a series of bearish momentum divergences. And also the relative strength out of Consumer Staples throughout March, which is something we haven’t seen in a long long time….
Remember, Consumer Staples outperforming is consistent with a market environment where stocks are under pressure.
Here’s that chart showing Staples potentially confirming a rare “Diamond” reversal pattern relative to the S&P500: [Read more…]