This "lagging" sector predicted last year's market top

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A year ago today, the S&P 500 hits its 2011 highs.  Basic Materials ETF (IYM) reflected weakness before the 500 hit its highs.  Looking back of the past one year, IYM is trailing/underperformed the S&P 500 by 20%.  Odds are pretty high that the S&P 500 needs this sector to break falling resistance, before an extended and quality upside move in the 500 is to take place.

Watch this lager right now, as it continues to create lower highs at a key falling resistance line/top of its flag pattern.  Weakness in IYM in early 2011 was a suggestion that investors should be cautious when constructing a portfolio....the message remains the same one year later!