Our tracking of High Beta to Low Volatility and Large Cap to Small Cap shows both High Beta and Small Cap lagging a week later after our initial post here. We noted lat week, “If this trend continues, then it is almost a guarantee of a correction.” We continue to believe that. The market is being lead by the mega caps.
We track the Powershares S&P High Beta (SPHB) versus Powershares S&P Low Volatility (SPLV). SPHB is down on an absolute and relative basis since mid March. The same is true of the Russell 2000 versus the S&P 500.
