With many all time highs seen in October, it is a good time to review the canaries in the coal mine for signs of trouble. Remember, canaries are only valuable at major market peaks and bottoms. For the vast majority of the time in between, they will be of little value.

We review all of the major stock market indices and sectors along with other key indicators of overall market health. At major market turning points, we will often see glaring divergences or non confirmations with a few of the indices, sectors and indicators lagging the move. Let’s do a quick walk with the major indices and see if we have any warning signs.

The Dow is first and it just recently scored an all time high, which washed away the very small yellow light in October.


The S&P 500 is next and it, too, recently hit an all time high.


The S&P 400 Mid Cap is below and look how quickly it went from laggard (mid Sep to  mid Oct) to leader now where all time highs were made.

Read the rest of the report online

Paul Schatz

Editor’s Note: Be sure to check out Paul’s Blog: Invest For Tomorrow

Paul Schatz is President and Chief Investment Officer of Heritage Capital, LLC, in Woodbridge, CT. Paul developed and manages all eight of the firm’s currently offered investment programs.

Paul brings an increasingly high tech approach to investing by enhancing all of the firm’s investment models and data monitoring using sophisticated computer programs. Heritage Capital is a Registered Investment Adviser.