Jim Chanos says Sotheby's have peaked before every bubble

"Closely watched hedge fund manager Jim Chanos says he has the best barometer for gauging where 1 percenters are putting their money, given the Federal Reserve's easy money policies that have been fueling their portfolios to record highs. During an interview Thursday on CNBC's "Squawk Box," he pointed to the stock chart of Sotheby's."

Putting the S&P and Sotheby's together, I make two observations.

1. The two shows strong positive correlation.
2. At this current top, Sotheby's diverged by making a lower high and then correcting in advance.

If their relationship stays together, the S&P is going to fall soon.