Markets are driven higher by leading stocks, and currently there’s just too many leading stocks acting well for the market to be in trouble. What is a leading stock? Stocks that are in a Stage 2 uptrend that are attracting capital from institutions. Often they are growth stocks that have recently IPO-ed and are in expansion mode.
If the market really was going to breakdown here we’d be seeing more leading stocks breaking down or at least failing on false breakouts. Instead what we’ve seen recently is many leading stocks breaking out higher on volume and looking like they are set for another leg higher in their Stage 2 uptrend.
With leading stocks acting this well and and sentiment this poor this will probably end up being one of the best buying opportunities heading into the rest of the year.
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