MORNING NOTES

Word to the wise.

TRANSPORTS and SMALL CAPS leading down again. W have told you to avoid as they have been losing relative strength. The same for ENERGY and COMMODITIES.

Now…we are seeing the rest of the market getting a little bit of the distribution dance. Just pay attention. Starting to see more names break support/moving averages. Starting to see some breakouts fail. AND as we have stated, there has been a big dose of bullishness and froth recently.

This doesn’t mean i is the end of the world…but again, we have not has a 2 percenter to the downside for the big indices since before the election.