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The stock market, all 22,000+ of it, is but one of many bubbles a bubblin’ away under the economy.

Major U.S. stock-market indexes are trading near record levels, but does that statistic simply mask an ominous picture that’s being painted behind the scenes?

“The good performance of these large companies is masking the fact that many stocks, including REITs and those in the retail sector, have already entered bear-market territory,” Lamensdorf wrote, referring to real estate investment trusts.

Separately, a read on market supply and demand from Ned Davis Research has shown weakening demand for stocks, despite major indexes continuing to grind higher, while the supply metric has started to rise. Rising supply and lower demand could indicate waning enthusiasm for equities at current levels.

There have been other signs of worsening technicals. Currently, 60.4% of S&P 500 components are above their 50-day moving average, considered a positive sign for short-term momentum. In mid-July, nearly 75% were, according to StockCharts. For the Nasdaq Composite Index COMP, +0.16% only 47.3% of components are above their 50-day, compared with 67% in late July, a dramatic swing lower.

Recently, nearly 6% of New York Stock Exchange- and Nasdaq-listed securities hit a 52-week low on a day when the S&P 500 ended at a record, according to data from Sentimentrader that was cited by Lamensdorf, who called this “an alarming percentage.”

He added that it was the second-highest level going back as far as 1965, and that “Similar spikes occurred in 1973 and 1999, both directly preceding significant corrections.”

History. Read it.

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Market Watch.

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