REITs Off Earlier Highs, Warning Sign? (IYR, GGP, SPG, VNO)

Real estate investment trusts are well off their earlier session highs, and this could be potentially troublesome if the market wants to keep advancing, before summer seasonality takes place, and volume tapers off. Names like iShares Dow Jones US Real Estate ETF IYR, General Growth Properties GGP, Simon Property Group SPG and Vornado Realty Trust VNO are all well off their earlier highs seen in the session. Generally when real estate names and financials in general can not run, this means that the market advance is going to stall, and as of late, we've seen the market stalling a bit at these levels. We've seen consolidation from 1300-1325 on the S&P 500, and this means that we are resting before the next significant leg, which could be higher or lower. The possibility that the next move is sharply lower, as Alcoa AA sold off after reporting earnings last week, to the tune of some 5%. When Alcoa sells off that much, the S&P 500 generally sells off around the same percentage, and so far, we have not seen that kind of move yet. It may be just a matter of time, given that seasonality is setting in soon, with "Sell in May, and go away" rapidly approaching.