Five short days ago, the S&P 500 hit a new all-time high at 1987.98. The move appeared to be a breakout, albeit a modest one, from the recent range. And a great many analysts - particularly those possessing the rose-tinted Revo's - professed that 2000 was the next stop for the venerable market index.
However, the "breakout" turned out to be yet another in a long string of "fakeouts," in which the index in question quickly reverses and dives right back down into trading range. And in this case, the market has largely moved lower ever since.
To be sure, a "breakout fakeout" does not, in and of itself, represent a problem for the bulls. However, consider that this "pop and drop" action has become a bit of a trend in 2014 as the initial moves higher out of a range just don't seem to stick.
S&P 500 Daily 
In other words, most of the breakouts are weak and quickly reversed. This suggests that the bull case may indeed be losing steam and just might be yet another reason to play the game a bit more conservatively right now.
Next Up: Technical Divergences
Along these lines, another reason to be cautious in here is the action on the charts. In short, the charts of the major indices have not been singing the same happy tune for some time now. So, another in our long list of reasons to perhaps consider some caution in this market is a little something called a technical divergence.
We've spent a fair amount of time on this subject over the last month or so. But what follows is a text-book example of technical divergences amongst the major stock market indices and thus, is worth revisiting.
Here is the way the game is played. First take ...
