We have noticed in the past couple of days that many are saying that the nascent rallies in areas like the transports and oils have turned them into leaders. We disagree. We think they are nothing more than oversold rallies in areas that have been trashed with the jury still being out. For sure, they do not resemble anything that looks like leadership to us but we are always open for them to continue to do better. Our idea of leadership is not something that rallied a couple of days off their lows but something that has been strong and remains strong. We are talking about something that holds up best when markets drop and leads when markets rally.
As far as overall, the nauseating range remains. Not good enough to get out to the upside and not bad enough to totally break down. Eventually, that will change. Hasn’t yet!