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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?