NEW YORK ( TheStreet) -- Dow transports and Russell 2000 were the leaders to new all time highs in mid-March. Since then these two have been the laggards. The Dow industrials and S&P 500 performed like a sling-shot to all time highs on April 11 with the Nasdaq setting a multi-year high the same day. Since then the Dow industrials have held up the best among the five, but Dow utilities is now the best performer year to date with a multi-year high set on April 15.This configuration is a flight to defense in the equities market, a negative divergence overall.
The crude oil bubble popped in 2008 and with huge supplies of oil now in storage a trend below its 200-week simple moving average at $87.45 appears possible which would indicate risk to my quarterly value level at $79.66. Crude oil has been trading back and forth around its 200-week SMA since mid-2009 and the oils-energy sector is now 1.5% undervalued. This sector consists of 565 stocks with only 28 rated buy and with 134 rated sell, so this sector is also rated underweight.