Leading indicators pointing to upside?
As I see it, now that the S&P has cleared its “range” resistance, it is promptly coming up on a jumble of possible new resistance in the not too distant future.
But some of the typical “lead” indicators are behaving quite bullishly. Copper has burst higher, and with it, FCX has broken from a clear downtrend (pending some confirmation).
Emerging markets have also broken out of their pronounced recent downtrend.
And high yield bonds are happier (JNK):
While there remains plenty of risk in the market, and I still remain in the longer term bear camp, these indicators are suggesting that this rally may have some legs. Time will tell whether these clues are misleading, but it’s certainly worth noting.