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4 Key Market Charts to Watch in Early 2014

Here's a great way to guage the market's risk during 2014

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2)  Defensive Rotation: In confirmation of the risk-on environment, defensive sectors such as Utilities (XLU) have been consistently underperforming the S&P 500 since last April (see declining ratio in chart below). On a weekly basis, the ratio is currently at its most oversold level in the past 10 years. Should this trend begin to reverse, as it did in early 2011, it would likely be an early warning sign of a risk-off move.

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