As I've been saying lately, other than sentiment, I am not watching the indicators very closely because the action in the indices is telling the real story.  At some point the indicators will mean something, but the market action is sometimes the best indicator.  And at some point this rally will end, but so far all of the bearish predictions have been wrong.  I'm hoping the charts get us out before the recent gains are eaten given up.

The market leader Dow Transpiration Index did breakout yesterday, after a brief bull flag formation.  This is another good sign for the broader market, coming from this economically sensitive transportation index.
 
                         

We have a holiday on Monday and the trading surrounding President's day isn't as positive historically as most holidays. 

                               Chart provided courtesy of www.sentimentrader.com

Of course February in general isn't strong historically and look what the indices have done during the first 12 trading days in February.

With earnings season winding down, the next jobs report still over two weeks away, and the next FOMC meeting a month away, there isn't much out there to stir the pot for the next couple of weeks, except for perhaps some geopolitical unrest.  It will be interesting to see how investors react during a quiet period after this monster rally.  How about you?  Are you still buying the dips or looking for the exit?

Thanks for reading!  We'll see you tomorrow!

Tom Crowley