The S&P 500 closed almost unchanged ahead of the release of earnings of heavyweight companies. Breadth closed almost even but over the last few days, the number of stocks hitting fresh new 52 weeks lows outpaced by far the number of stocks reaching new highs on the NYSE and on the Nasdaq, this is pretty surprising at this level of the market and points out to the fact that internal momentum is deteriorating, confirming our observations during the month of January. Weekly sentiment indicators collected among active professional managers put into evidence some catiousness among this category of market participants. In summary, the stock market is entering a period of adjustment of valuation in a context of normalization of the yield curve.