Financials are back on the leader list, and Korea dropped off yesterday.

This chart barely shows any selling so it is hard to get behind the idea that the market is about to sell off. But, it could be that institutions are piling into the momentum names as the rest of the market weakens. Just a thought.

(Click on image to enlarge)

The Home Construction group just continues to grind higher. This is a good looking set up, but I am also concerned it might fail at the top of the range. But with employment so strong, it makes sense for this group to be performing well.

(Click on image to enlarge)

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. Watching for signs of a peak.
The short-term trend is down as of July-28.