A Frothy Disconnect

Every day we get to see something new, here's today's very frothy disconnect.

 This is the Euro in green vs the SPY, note how flat the Euro is, it should be almost a perfect correlation, but the SPY/Market (red) has run way above the Euro, it seems the market is more excited about Monti then Europe is.

 Credit leads equities... then look at the disconnect between HYG and the SPY (red), in a risk on trade, HYG would be right up there or leading the market, you can see the recent normal correlation to the left.

 And US treasuries, which should be hitting new lows on the day according to the market are not, it seems there's some reluctance to let go of the safe haven trade in exchange for equities.

Even XLE/Energy took a much bigger dip then the market.

 And the short term chart are not relenting, they were willing to follow at the start, but only so far-DIA

 DIA

 IWM

 Look at the Q's!

And the SPY...

There's definitely something very frothy in the market and SPY in particular.