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Stocks ripped higher today (through the 1121 level I've been watching) on the better-than-expected jobs report. Small caps led the charge pulling to a new 1-year high:

Financials, in contrast, are still below their highs made over the past few months:

In fact, the XLF is now running right into the downtrend line shown above. Financials have led the market for the past few years and they have been diverging from the new highs made in the major indexes since the beginning of the year.

In addition, the VIX is retesting its January lows signaling complacency reigns over fear once again:

Also notice that the last time RSI (top of the chart) for the VIX fell this low was late October of last year just before stocks corrected roughly 7%.

Bottom line is I wouldn't be surprised to see at least a similar pullback begin relatively soon.

Disclosure: long SDS and VXX