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[arbman]

Fridays have been weaker recently. The only issue about Friday was the outperformance of RUT and Nasdaq for a market that's supposed to be making a divergent high in NYSE MCO in the morning and selling off with the breadth already leading lower. Breadth did not really lead lower on Friday. So, Monday and especially Tuesday will be critical now for a genuine sell off rather than a sideways consolidation. The percentage of issues over 50 day moving average went up too. I put the index leadership for Friday only below...

I am not sure we have seen the top, although I think it is very close. Check out the leadership structure in the sectors... The industrials XLI finally peaked it seems and now there is maybe one more high attempt with energy and staples only. I doubt the consumer discretionary and financials will take the lead from here, they have been lagging for a long time.

This market is ready to correct, let's see a last attempt to push, or more like a spike next week. Any spike is a sell in my opinion this week unless the market breaks down on Monday and sells below SPX 1840s. Best of luck.

Charts...



The index leadership on Friday...

http://ichart.financ...,^MID,^SML&.png

The money though continues to flow into the wrong places...

http://ichart.financ...LI,XLB,XLU&.png