This column originally appeared on Real Money Pro at 8:42 a.m. EDT on April 3.NEW YORK ( Real Money) --
"If there was ever a misleading day, thisSince I have been away over the past two days, the S&P 500 has risen by only about 2 points. Nevertheless, some subsurface weakness and emerging divergences have been developing, a thinning out that has historically presaged broader declines:
Tuesday, April 2, 2013 was it." -- Dan Greenhaus, BTIG
- The Russell 2000 underperformed on Monday (-1.3%) and was down (-0.5%) on an up day on Tuesday.
- The advance/decline line is eroding as the market's rise narrows.
- Breadth disappointed - yesterday, NYSE decliners eclipsed advancing issues by over 200, excluding ETFs and fixed-income closed-end funds.
- The number of new 52-week highs narrowing.
- The bank stocks/brokerages are lagging.
- Transports trailed, down 1.5% and 1.2% on the first two days of the week, respectively -- check out the chart of FedEx (FDX - Get Report).
- Semis got schmeissed (-2.0% on Monday and -0.8% on Tuesday).
- The cyclical index dropped by -0.7% on Tuesday, following a 1.2% decline on Monday -- check out the chart of Caterpillar (CAT - Get Report).
- The yield on the 10-year U.S. note remains low (1.86%) and is signaling slowing domestic economic growth -- speaking of the bond market, this week brought a continued disconnect between Treasury note and bond yields (lower by 3 to 4 basis points) compared to the market averages (slightly higher in price).