The Stock Market Machines Are Breaking Down

Much has been made of the relative weakness of U.S. small cap stocks so far in 2014. Despite the fact that the large cap S&P 500 Index has battled its way to fresh new highs throughout the year, the small cap Russell 2000 Index is down by -2% year to date. But what is perhaps even more notable than small cap underperformace is the fact that increasing signs of rot are presenting themselves from within the S&P 500 Index itself. And the fact that these trailing results are coming from the economically sensitive industrials sector is particularly troublesome for the sustainability of the stock market rally going forward.

Please click on the link to read more of my article on Seeking Alpha.

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