Watching the major indices (particularly the S&P 500) attempting to break into new highs territory. Interestingly, I am watching a few leading stocks breaking out to new highs, but some are hesitating because the indices are hesitating.
What’s going on?
It’s a chicken and egg thing – leaders break out leading the index but since the index has been marching up while many stocks have fallen, perhaps some people feel the index should lead. However, we have had a few breakouts stick, including Apple, our old friend from the last rally.
If stocks like Apple continue to move higher, they will likely lead other stocks and we just may see a breakout in the indices.
Let’s see if that happens or some “surprise” news comes out of Europe or who knows where to rain on the parade again.