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Editor's note: This is a brief excerpt from Hedgeye morning research. Click here for more information on how you can become a subscriber to the fastest-growing independent research firm in America.

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At the S&P 500's all-time closing high yesterday, Total U.S. Equity Market Volume (including dark pool) was down -14% and -33% versus its 1-month and year-to-date averages.

An Eerily Familiar Illiquidity Setup  - 78

In size, we would much rather be long the Long Bond via TLT than SPY with this illiquidity setup in stocks looking very similar to the end of September and November. That of course was just before the abrupt 10% and 5% corrections in early October and December.

What do you do when you have global growth slowing and #deflation? You buy the Long Bond (TLT), and anything liquid equities that looks like a bond. On a related note, Utilities led U.S. Equity gainers (again) yesterday, +1.2% on the day to a monster +29.3% year-to-date.

Click image to enlarge.

An Eerily Familiar Illiquidity Setup  - R3K