Despite bouncing sharply off the November 21 bottom in the S&P 500 we continue to see the breadth of the market deteriorate. The market has had every excuse to rally sharply in the last week – endless government cheerleading, a solid re-test of the November 21 low, a 40% rally in the financials, confirmation that nationalization is off the table, etc. The weakness in breadth is another clue that the risks of having heavy long exposure remains elevated.
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