SP500 is extending all time highs at increasingly shaky market breath. Defensive sectors are leading (utilities, staples) and risk sectors are lagging (cyclicals, small caps, industries, and high yield bonds). Divergences such as this need to be resolved one way or the other. My take is that we are at or near the top.
Why? Last time we saw divergence as this was in 2011 before a correction. The divergence is more mature now but this just makes it harder for stocks to keep advancing.
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