Summary: Subtly market internals continue to slip underneath the surface. Additionally, high beta and other “risk on” barometers continue to underperform “risk off” benchmarks such as, utilities, consumer staples and healthcare. Typically, when these two events occur it is a precursor to a corrective wave. Add in seasonal trends, which tend to turn negative as we approach May, and clearly the odds favor a correction as opposed to a continued rally.
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Best.
