Markets are mixed before the open with a lot of focus on the lighthouse beacon of Micron earnings later today to see if markets can steer even higher. But what is pretty chilling is what is going on just below the surface. There just isn’t the breadth that the TV news indexes would like us to believe. And that is leaving this market very vulnerable.

Blane Markham took a small group of traders through strategies that he has refined to use as this strong undercurrent starts to unfold. Honestly it was crazy impressive. Take a look at two of the tickers he dialed in on that make this clear as a bell:

This is the weighted S&P 500 YTD. It’s the bellwether that everyone refers to to gauge the overall market. Exactly what we have been conditioned to watch and use as our dashboard. Steady chop but not falling off the summit we climbed up to in the protracted rally we have seen for a long time.

But take a look at the unweighted S&P. It reflects each stock equally and doesn’t adjust for market size. It shows a different story.

Look at the decline since mid August. Pretty startling. And this isn’t just some anomaly resulting from the way weighting is calculated. Blane showed other indicators that confirmed what most of us are missing. Things are building up to a whole new trading reality.

If you want to check out the whole session Blane did with the lucky group of traders, you can see it here.

Definitely worth the time.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily