Tough to make real headway with these transports reversing. They remain the big thorn in the side of the market and have been radically underperforming.
But against them is a twin thrust of financials and pharmaceuticals and I struggle to think what they have in common. The financials need a strong economy and that could be related to the purchasing manager's report. The drugs? Could they be reacting to a weaker dollar? To those people who think that when the transports go down it means slowdown, do we forget about this month's supply chain report?
Of course days like today could go either way and I am conscious that there are huge fade-the-rally bets being made, ones that were doubled down when Bernanke didn't give you much.
You can understand that the bulls look at that supply chain number, as well as the weaker dollar and the stronger price in copper. The bears deal with the actual sales and profits of companies and there's not much to write home about on that front that we know of. Plus, of course, they look at Apple AAPL . When Apple goes down, people just sell.
My take is that unless we get the transports and/or Apple up, I can't trust this market. Too much in flux for the moment.