The S&P 500 and the CRX index have had a pretty decent correlation over the past few years.  Their tops and bottoms have taken place close to the same time frames.  The S&P 500 finds itself around 3% above last Aprils highs, the CRX is truely reflecting relative weakness, as it is 18% lower than its April 2011 highs!

The above weekly chart reflects that the 61% Fib retacement level looks to have stopped the CRX rally and now the CRX is breaking support at (1). 

We are getting “Mixed Performance Numbers”  when you compare the S&P 500 to the CRX index.  Which index do you feel is sending the correct signal about the economy?


How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past