Still, nothing in the way of even a 3% correction. Major indices, for the most part, remain in good shape.

The DOW and S&P”s breakout from early last week remains intact.

The NASDAQ and NDX remain in shape but we are now seeing some mega-cap names causing a little bit of lagging here. Names like AAPL, AMZN, PCLN and GOOGL have worked against but not so much just yet. The NASDAQ needs to break above 6477, the NDX needs to hold the 50 day at 5911.

But past lagging areas continue to catch up. The TRANSPORTS have come up the right side in a hurry on the back of FDX, RAILS, TRUCKERS. Many say this is hurricane-related. We don’t care why.

On top of that, the small caps (RUSSELL 2000) are almost at new highs. Leave no doubt that the stronger action in the ENERGY has helped out a lot.

Other notes:

ENERGY is indeed stronger but very mixed. While a few names are at highs, a lot of names are still near lows. Stronger names COG,CVX, HFC,PSX,RDSA, SU, TOT.

SEMIS remain in shape. They continue to lead up or down.

The big FINANCIALS got a bid last week as long rates backed up. C remains the strongest names with others just back in range. The REGIONALS not so much but better.

The INDUSTRIALS (XLI) continue to move out with many cyclical and deep cyclical names breaking out in groups like CHEMICALS, PLASTICS, PAPER, WOOD PRODUCTS and stuff like that.

With rates backing up a wee bit, UTILITIES and CONSUMER STAPLES have been rolling over. These are the most defensive of areas.

We continue to be asked about how markets here refuse to correct in a meaningful fashion. To be boring and to repeat…markets are the benefactor of the most easy money largesse in the history of the world. Simple as that. Europe and Japan are still printing trillions and have negative rates. Many other countries are the same or near 0%. We really don’t matter any more but in case you wanted to know…we are still around 1%.  This is still out of bounds easy money. We also know you are hearing Yellen will start rolling back some of the $4.5 trillion of printed money here. Maybe they start, but they are starting nominally. They will never be able to roll it all back as Yellen has already telegraphed that if markets get into trouble, she can just start printing again. Yes…SHE SAID THAT!