The market is rewarding the bulls and punishing the bears. So why am I still feeling cautious?

The Leader List

Below is the list of market leaders. Leadership is primarily based on momentum and relative strength.

The US Dollar is weak, and that has helped push the foreign ETFs into leadership.

The longer-term US yields are also weak, and that has helped the defensive, income-yielding ETFs such as PPH, XLU, XLP.

The overall market may be a bit wobbly at the moment, but it is still in bull mode because the high growth ETFs remain leaders such as MTUM, FFTY, SOXX.

Outlook

This week's Value Line Survey is upbeat.

The Survey continues to mention a concern about valuations, but it is encouraged by employment, consumer spending and the uptick of inflation. The Survey's GDP estimate is 3% growth for Q2.

Even more encouraging, according to Value Line, is that the bulls are buying stocks on every market dip.