Market leader #1, the Biotech index, is anything but broken as we noted for the, oh, 100th time a couple days ago after many drums were beating for an end to BTK’s rally.  When it ends it ends, and the trends (esp. by the NFTRH weekly chart and its upward Arc) will instruct on that.  Meanwhile, the daily did not even test the channel line, instead it’s bouncing at the 50 day averages.

Market leader #2, the Semiconductor index, was suspect under the 50 day averages.  Now?  Not so much (though in this market, one day popping up or down needs confirmation).  SOX is 100% intact above the support level around 650.  It’s got some pretty gaudy upside targets by longer-term charts.  Above 650, bulls have the benefit of the doubt.

As for leadership, we’ve been using the Bio’s vs. the NDX (highly specialized and vital tech vs. an average of cool gizmos and some silly sh*t no one really needs).  It’s in a secular bull.

SOX has maintained this uptrend channel vs. the S&P 500 since we, virtually alone at the time, managed the coming of not only the Semiconductor industry upturn, but also the upturn in manufacturing, stabilization of the economy and finally… ‘JOBS’!

While there are reasons to have caution in the markets now, there are not many indicators or broken indexes (hello Tranny) I can find to back that up.  Yes the Transports look iffy, but I don’t buy Dow Theory.  It seems kind of silly in this day and age.

Various economic data are decelerating and the story going around is that the stock market has discounted a worsening profit picture already.  Ha ha ha… but you know what?  The thing is bullish until it isn’t bullish anymore.  It is a time to simplify and do what the market says.  Right now the market still has full confidence.  It’s Peak Fed © after all.