One Bullish Sector By My Standards

By Jeff Pierce

I measure the strength of a sector by whether the RSI is hitting new highs while the chart is hitting new highs, like the Industrial Supplies Index below. I wasn't even going to post tonight because I wanted to see how the markets digested these last 2 days of gains before jumping to any irrational assumptions about whether we are ushering in the next great bull market, but after going over all of my sector charts I can say I don't see a whole lot to be excited about.

The chart of Investment Services sector is typical of a lot of the charts I ran across that had negative divergence on the RSI. While there was a lot of buying pressure today I think it's to early to tell if the bulls are ready to take the reigns and run with it.