Divergences

You forget I've seen you work before
Take 'em straight to the top
Leave 'em crying for more
I've seen you burn 'em before
--Pat Benatar

Although the Dow and SPX are testing all-time highs, not everything is in synch. The NASDAQ has been trading heavy, with traders rotating out of tech names in favor of big cap stability.

However, the banks are also weak. Hard to imagine a sustainable lift in SPX without these names.

Both the COMP and BKX charts also have a head-and-shouldersy look to them.

Technicians call situations where indexes do not trade in synch 'divergences.' Such inconsistencies suggest caution.

position in SPX