From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @GrantHawkridge
In recent months, we’ve seen a rare bid in defensive assets as investors position for more mixed markets and messy action in the weeks and months ahead.
These defensive areas of the market have stopped trending lower on relative terms and many are rebounding off of very logical support levels… Gold Miners and Bonds are two examples of safe-haven assets that we recently got involved with on the long side in order to express this view.
Now add the following developments to the mix:
- A growing number of risk assets are hitting our upside objectives or running into logical levels of overhead supply
- Intermarket indicators are becoming increasingly mixed and some are even signaling a bearish shift in investor risk appetite
- Sentiment is running hot
- Internals are deteriorating in some of the market’s former leadership areas
In this post, we’ll focus on the last bullet point and take a look at what’s going on under the hood in some of the major averages. Or rather, what’s NOT going on…