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More pain for the cynics of this rally at high noon today, as the pressure building under 1400 on the S&P 500 is flirting with breaking up and out. Energy and materials still have to prove more to me, but the real story of the session is the stunning reversal higher in the transportation stocks from yesterday, well before crude oil spiked down earlier. In addition, financials are continuing higher out of this five-week consolidation.
Again, a five-week consolidation of dead money on the XLF, which makes the argument that we are in some type of euphoric bubble in stocks seem misguided at best. Sure, Apple is extended, but as bears have been finding out for months, it is extremely difficult to label a top, let alone time one perfectly.
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