Good morning,
The S&P 500 closed at another record high last Friday, marking its fifth consecutive weekly gain and third-straight weekly record close.
However, for at least the second straight week, there was a complete lack of new highs with it.
I want to be clear that poor breadth isn’t a reason to be outright bearish. But, I think what we’re seeing recently is a perfectly good reason to not be overweight equities, or out over your skis.
There are three important dynamics for investors to be aware of right now:
