Although media outlets are still cheering yesterday’s rally we are starting to see some cracks appearing in the rally we’ve had since late December 2018.
The weekly chart below shows the SPY vs. the # of S&P 100 stocks currently above their 50 day MA in blue.
As you can see we are seeing a negative divergence between the SPY hitting all-time highs and the actual # of stocks participating in the rally.
Also notable to watch is EEM.
Yesterday we broke below last month’s lows of 43.35. The buyers couldn’t reclaim the level and this morning and we are seeing additional weakness. March’s lows are now in play.
All of this could change with US-China trade talks set to take place this Friday so the 43.35 level is a notable data point to continue to watch.