Low volume during the recent equity rally raises doubts over its sustainability, the analyst added.
“As well as high complacency, further critical bearish evidence comes from our advisors sentiment survey today which shows the bullish advisors at 50.5%, the highest level since the May top,” Coe wrote. [ETF Espresso: Advisor Sentiment Rises with Market]
Another warning is the outperformance of utilities ETFs, he noted. [Dividends Power Utilities ETFs in 2011]
“Leadership from the most defensive sector is not indicative of a healthy bull market. In such a market the utilities would be trailing by a large margin,” he said.
