... whether we get the long awaited correction (last one was in the summer of 2011) remains to be seen, but these cracks are visible:

"The stock market’s dependence on the credit market is also noted by the perspicacious Peter Boockvar, chief market analyst at the Lindsey Group. The much-commented-upon weakness in the Dow Jones Transportation Average coincides with the backup in the benchmark 10-year Treasury note’s yield, from a low of 1.64% on Jan. 30 to 2.48% on Friday, the high for the year.

“I could be grasping at straws, but the transportation index peaked on Dec. 29, the utility sector [XLU for Utilities Select Sector SPDR fund] topped a day before the 10-year yield bottomed and is at a 10-month low, and the real estate investment trust sector [ iShares US Real Estate ETF (IYR)] did so three days before that and yesterday closed at an eight-month low,” he wrote in a note to clients on Friday. “These last two sectors are an obvious response to the rise in rates, but the Industrial Sector SPDR ETF [XLI] topped on Feb. 20 and closed yesterday at near a five-month low. The Materials Sector SPDR ETF [XLB] peaked on Feb. 24 and is at a 10-week low.”

Boockvar says he doesn’t know if this is because of global growth concerns, earnings worries, or consolidation of the gains of the past few years. “What I do know is that financial conditions continue to tighten, however modestly. It started with the end of Fed QE; it continued with the stronger U.S. dollar, which was then followed by the rise in long-term interest rates, which in turn has raised the cost of corporate capital as the Moody’s Baa yield index is at the highest level in almost a year and a half.”"

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