Ratios diverging on risk
There are some divergent ratio indicators regarding risk appetite. Emerging markets (EEM), which badly underperformed last year and looked set on righting that score in Jan/Feb appeared to have topped out relative to the S&P.
The same with small caps (IWM), which have underperformed relative to the S&P over the last couple weeks.
Those are both bearish warning signs that risk appetite isn’t as good as it should be in this kind of bullish environment. The market continues to have faith in the all-powerful American consumer though, as consumer discretionary (XLY) continues to outperform consumer staples (XLP).
We also haven’t yet seen warning signs from the credit markets. Junk bonds (JNK) continue to perform strongly relative the Treasuries (TLT).