Rotation Report 9/22: Mirages

The market is at new highs, so everything's good right?  Well....The S&P 500 Equal Weight index to S&P 500 ratio has confirmed a downtrend.  This doesn't mean the market can't go higher, but the market is significantly thinning out.

The consumer ratio has broken key support.  The last time it broke well defined support was in early March, preceding the small cap sell-off.

Retail was unable to take out key resistance while gas prices and oil dropped to key support levels.  These might be signs the average consumer is just barely getting by.

Commodities across the board continue to drop.  Notably Silver gave up long time support.

In the bond arena, the downtrend in junk bonds to long term treasuries ratio is strong.  Bond market players continue to be more cautious.  This is another yellow flag the market has continuously shrugged off.  Again, i'm not saying junk bonds can't reach new highs.
 

TLT found a bid at the first support zone.  Can it continue?  

As TLT found support, KRE had a false breakout at wedge resistance.  That's no coincidence.  Is this a sign KRE's move is all about rates?  Near new market highs we'd like to think this has something to do with the strong economy and loan growth.  Time will tell.

The euro hit new lows this week as it continues to probe long term support.

Hong Kong is retesting a key pivot.

Russia is back at key support as the MA's have started to stiffen up.  It seems like only a matter of time before it breaks.

The DAX is near a key point.  I'm watching the RS pivot line.

Strong stuff: Software, rails everything healthcare >> biotech.  (Not too shabby eh?)

Weak stuff: coal, home furnishings, construction, sugar

Trade 'em well!