MTI Dropped 0.03 to 1.13 Led by Losses in Momentum/Breadth/Divergence & Supply/Demand

The Major Trend Index dropped 0.03 to 1.13 in the week ended May 15th, led by losses in the Momentum/Breadth/Divergence and Supply/Demand categories. The S&P 500 closed at new bull market highs in three of the last five trading days, but the breadth and leadership trends underlying those highs are more consistent with a tiring market up leg than a sudden acceleration higher. Still, the combined evidence is enough to keep us postured with net equity exposure of 61% in the Core and Global Funds.