Small Caps Continue to Lead - Posted by Coolhand

The bulls had another great week last week. Both the C and I funds posted gains of more than 2% and the S fund almost doubled that at over 4%.

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Price on the S&P closed near the top of its trading range. We can see that there are higher lows along the way, so an upside breakout seems to be in the cards. Price on the DWCPF continues an almost relentless push to the upside and it looking incredibly bullish. Many are concerned that this can't last, but trying to time market exhaustion is not an easy thing to do; especially as we enter the most bullish time of the year. As of last Thursday, we certainly don't see the smart money (NAAIM) shying away from being long.

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Cumulative breadth on the NYSE continues to impress and remains quite bullish.

The TSP Talk sentiment survey came in heavily bulled up. Don't let that scare you. We have seen our sentiment bulled up for weeks (in the past) without the market diving. And we have NAAIM on our side as well.

So, what would Forrest Gump say about this market? Maybe "Silly is as silly does"?

I still highly suspect that this market will get silly to the upside. I wish I could predict that, but I don't have a crystal ball. Just intuition based on what I am seeing.