It looked like there might be a break out to the upside today but volume never picked up and the stalwarts refused to yield more than a modest gain. There are winners within this market malaise, which can be detected by looking at a ranking of relative strength and momentum among the the various market sectors.
XLE continues its little run, followed by the always optimistic tech sector. Over on the MOSAIC site we’ve been examining why XLK is generally a better bet than QQQ but for now they are moving in tandem. The big news is the hammering that bonds are taking with TLT leading the pack down like an avalanche. First level for TLT support is around 119.5, about another 2.5 % down from today’s close. If the bullish breakout does materialize that drop could happen in a day, so bottom fishing TLT at these levels could be a risky proposition.
