I noticed this index yesterday and wondered if it was going to break out. I even had started the blog post but didn’t get to finish it and today it did indeed break out. I believe what we’re seeing in the U.S. markets is sector rotation where some of the under-performing sectors may gain some strength and some of the recent leading sectors may move sideways to consolidate gains. I noticed the drug retailers were strong yesterday and many of the recent market leaders performed well, even as the market was turning it’s wheels and flirting with a pullback.

I’m not even going to entertain the idea of shorting this market until my timing system flips, and so far it’s still bullish and I don’t foresee it turning anytime this week.


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