The broader market has been weakening for awhile, but it has been hard to detect because leading stocks have been doing so well.
The important question now is whether or not this is the beginning of a larger correction? I don’t know, but it is worth a degree of caution in case it is.
The Short-Term Leader List
The strongest ETFs are blue, the additional leaders are green and the weakest are red. The S&P500 is the benchmark.
When Utilities and REITs are market leaders, you know that the general market must be getting defensive.
Outlook
I think it is time to start getting concerned about the next general market correction.
The long-term outlook is improving, but weak M2 growth is a concern.
The medium-term trend is up, but on watch for signs of the next downturn.
The short-term trend is down.
