According to Seaburg, this perception that the market is overheated is coming from three main developments.
The first has to do with the underperformance in the transports. "Everyone is up in arms about the transports, but the underperformance has very little to do with a weak economy and has more to do with the structural issues within the sector." The Dow Jones Transportation average is down nearly 10 percent year-to-date while the broader S&P 500 index is up 2 percent in the same period. "I wouldn't look at this [divergence] as a negative indicator right now."