Another leader index is nearing its upside target. The question is, will these things blow right through? The US has the duel fuel of a relatively okay economy and a strong currency, which theoretically gives the inflators more ammo. But how long do they keep inflating in the face of a soaring stock market before the whole thing begins to look silly to even the most casual observers?
Cue the Dow Theorists, cue the DT confirmation noise and cue 6500 for the Tranny should this break to blue sky hold.
I find it disturbing that the $RUT, which has been a negatively divergent leader broke the nice neckline I laid out for it in NFTRH 235. That is what I find disturbing.
I find it less disturbing that the Dow bounced because that is exactly what we noted it looked like it was poised to do.
Meanwhile, the Tranny is holding at some moving averages and under the dome we placed over its head this weekend.
The leaders had better get about the business of downside leadership fairly quickly or these damn bulls are going to… well, you know.
Wanna see a market whose leadership has really thinned out?