SIGNAL UPDATES

Markets continue higher as the morning gives few if any pullbacks. We are however, approaching substantial resistance on various major indexes such as 131.85 on SPY, 39.5 on QQQQ and 34.5 on SMH.

The prices of the ETF's are also heading into overbought territory as most now trade with 2 day RSI's near the 90 level. Volatility indexes however still fairly tame as the VIX/VXO tandem continue to trade near their complacent 10 day SMA's.

Market internals continue strong with 2,5oo more winning issues than losers.

Sector winners that lead the way include airlines, retail, brokers, trannies, tech, semis, internets and drugs. Laggards are biotechs and oils which look like they are about to turn lower.

Metals have staged a rebound today as the major metals indexes, HUI and XAU are both up more than 1%.

Last note, the IWM is +1.3% compared to SPY+.58%, so it appears that when the markets move up the small guys outperform and vice versa when the markets turn lower.