The short-term up-trend has been very strong, but now we on watch for signs that the momentum is starting to stall out.

The Transports have turned lower, the leaders seem extended, and now the focus is switching to the defensive sectors Health Care and Utilities.

Health Care breaking out.

Utilities turning higher.

Transports turning lower.

Industrials topping out?

The Leader List

The leader list is based on short-term momentum and relative strength.

Energy has already turned lower again.

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 that upside momentum is slowing.