Through out the Bear market that began in late 07 the utility index XLU and the high yield bond index HYG have tracked each other tick for tick. I'm noticing now that HYG and JNK are both on the verge of testing new lows while the utility index is trying to hold it's ground. I believe that the utilities will be part of that group of stocks that the mutual funds puke up in the scenerio that Atilla talks about and this divergence is suggesting we are right on the cliff's edge.
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