Transport Avg breaking out to highest in nearly three months

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Trend bullish - Minor pullback has not done much damage despite being down 5 of the last 6 days.  Meaningful support should materialize between 4275-4320

S&P has now declined 5 of the last 6 days, but has lost merely 2.1% in that timeframe.  Meanwhile, the rally from late May which spanned 15 trading sessions managed to successfully gain roughly +7.5% or about +0.5% a day.

Thus, pulling back roughly 1/3 of this most recent rally has not caused much technical damage and still has not violated initial support discussed last week at SPX-4300.

Interestingly enough, despite -0.75% to -1.25% losses in large-cap Sector SPDR ETF’s like $XLK, $XLY, and $XLC, the equal-weighted versions of all these sectors of Technology, Discretionary and Communication Services finished positive on the day.  

This goes a long way towards showing how the broader market really turned in far more positive performance than how $QQQ and SPX’s finish might have indicated, and the Equal-weighted $RSP was higher by +0.61% on the day.

Factors such as better overall breadth lately, failure of Technology to break down meaningfully (even despite Monday’s weakness in $MSFT, $GOOGL), sentiment being worse than what ...
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