In May, the rally was still going strong.

In the beginning of June, the rally continued and it brought the market indexes to higher levels.

Is there a possible problem that investors are not seeing?

Yes ... the market strength has been getting weaker since May. In fact, when you look at our C-RSI levels (zero based Relative Strength Indicator), you can clearly see that the S&P 500's Relative Strength has been moving lower and lower.

Not just lower, but making lower tops and lower bottoms ... a definition of a downtrend. The market's rally isn't dead yet, because the C-RSI is still positive. But ... unless this down trend in the Relative Strength changes into an up trend fairly soon, the market will find itself in a correction.

Many analysts are counting on Earning Announcements for the 2nd. Quarter to be positive and push the market up. Right now, our C-RSI charts are saying that the market is "cautiously concerned" about the possibility of disappointing earnings. (For more information on the C-RSI please see this link: An explanation of the C-RSI.)