NEW YORK ( TheStreet) -- The S&P 500 set a new all time high at 1,687.18 on May 22, but six of the nine discount retailers I have been tracking set their 2013 highs on or before May 22 on slowing consumer spending.Last week we had several data points that help diagnose the health of the U.S. consumer. On Tuesday, the Conference Board's reading on consumer confidence came in at a much stronger than expected 76.2, but still well below the neutral reading of 90 to 110. On Thursday, initial jobless claims were higher than expected at 354,000, above the recessionary 350,000 level, but the four-week moving average remained below 350,000. Also on Thursday the preliminary reading for Q1 Real GDP came at 2.4%, slightly below expectations. On Friday, personal income for April was reported as flat with a 0.2% decline in spending.
Fundamentally, we begin June still under a ValuEngine valuation warning with 71.7% of all stocks overvalued, and with 34.2% overvalued by 20% or more. We show 15 of 16 sectors overvalued, 14 by double-digit percentages, with six overvalued by more than 20% including consumer staples by 20.6% and retail-wholesale by 26.2%.