Market breadth has weakened. As illustrated in the chart below, the percentage of stocks above their 50 day moving average is declining. This means that as the market averages have moved higher there is less participation by the average stock in the S&P 500. The field of leadership stocks is narrowing.
Black line = S&P 500
Red line = Percentage of stocks above their 50 DMA
This morning I did trim back on some of our positions that have been showing relative weakness, namely energy and materials.