The stock market is undergoing a slow-motion deterioration

The stock market is undergoing a slow-motion deterioration
Biden checking watch during solemn ceremony for 13 Marines killed on his watch

[Ed. – Will Biden take responsibility for this since he has been taking credit for the recent surge?]

The land mines for the market are growing. Seasonal weakness is combining with uncertainty over the Covid-19 delta variant’s impact on consumer behavior, rising labor and material costs pushing prices higher as well as poor economic data out of China.

While the S&P 500 is still about 1% from its record high, those land mines are taking their toll on large sectors of the market.

“For the last several months, most stocks have declined more frequently than they have advanced–evidence of a weakening market condition,” CFRA chief investment strategist Sam Stovall said in a recent note to clients.

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Other strategists have noticed this divergence as well.

“As the equity market reaches new highs, the divergence in the advance-decline line suggests we may be approaching a top,” Guggenheim global chief investment officer Scott Minerd said in a recent tweet.

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