NEW YORK ( TheStreet) -- The schizophrenic summer continues.
The major U.S. equity indices are all now up in three straight sessions, while last week began with four down days. The overall trend since early June is positive, of course, with the Dow Jones Industrial Average, S&P 500 and Nasdaq back at their early May levels and within shouting distance of their peaks for 2012, but investors looking for substantial upside from here may risk getting greedy.
The analysts over at Bank of America Merrill Lynch have been arguing for a while now that the mega caps will outperform in the hot weather months and that call has been born out but the firm does see some question marks lurking in the technicals.
"This rally could be on stilts," the firm said Tuesday. "Bearish divergences also known as negative divergences are popping up all over in terms of price momentum, breadth, volume and in leadership indices failing to breakout (R2000
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