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The video in this report is only accessible to members

Divergence between the top performing stocks within Technology and the broader market could eventually lead Stock indices to consolidate.  Yet, currently, we’re seeing the opposite, as groups like Industrials and Healthcare have both pushed back to new all-time highs.  A minor broadening out in sector performance has happened, and this week has brought about a rally back to new all-time highs for MSCI World index along with a breakout in Equal-weighted SPX to the highest levels in nearly two years.  While many have avoided chasing some of the highflyers that have dominated performance, there’s been precious little sign of these stocks turning down.  Conversely, the broader market has now begun to show signs of mean reversion higher after a weak January.    

Overall, as I’ve discussed over the past week, the divergence between Cap-weighted SPX and Equal-weighted SPX does not necessarily mean that markets are vulnerable.

SPX has now approached 5000, which is psychologically important, but has little to suggest any instead of no real relationships as to why this should hold technically.

Meanwhile, MXWO World index has just moved back to new all-time highs.

Equal-weighted S&P 500 ETF ($RSP) has a...

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