We are on watch for a peak in this short-term uptrend.
This failed break out for the Transports is a bit worrying, but so far not too much damage has been done.
The bullish percents continue to support the market uptrend.
Sector Strength
What is this spreadsheet telling us?
QQQ is still the market leader, and TLT the laggard. That hasn’t changed in months. The major indexes are still skewed to the right, although they have been pulled to the left of where they were earlier in the year. The weak US Dollar is probably responsible.
Technology, Financials, Industrials, Health Care are the sector leaders. I will continue to keep money in these areas, adding on weakness and trimming on strength. The other areas may show occasional periods of strength, but I do much better as an investor when I just stick with the leaders.
The Leader List
This is a short-term leader list primarily based on momentum and relative strength.
Biotech and IBD Small Caps were strong today, while Russia, Energy, Retail were weak. Financials might be interesting.
The Biotech chart looks really good, but it needs a strong general market to keep it headed higher.
This ETF holds the best performing small caps stocks. It is a very strong chart, but a bit extended.
Financials look interesting. Is this ETF building a base for another break higher?
Outlook
John Murphy has pointed out that it has been a year since the market has experienced a 5% correction so it is overdue for a pullback. He also mentioned that we are entering the risky time of the year for market corrections.
The long-term outlook is positive.
The medium-term trend is up.
The short-term trend is up as of July-12. Watching for signs of a short-term peak.
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