It's the subtle indications in the market that give investors the greatest advantages. Otherwise, you are basically knee deep in information that everybody else is keying off of in an attempt to gain an edge that often times doesn't exist. The latest subtle technical clue that the market is delivering to those who choose to listen is in two important leading averages - SOX (Semiconductor Index) & RUT (Russell 2000).
When both of these averages are working together to provide leadership, magical bull runs can and often times do develop. What is important to understand in this circumstance is that this may be the beginning of their leadership exerting itself, with several more months of a carving out process taking place before the markets begin their run higher. All signs continue to point to late Q3 or Q4 as the point when the market gains its legs back.
For the time being, this is the type of foundation bulls want to continue to build throughout the summer trading months:
(click chart to enlarge)
SOX
RUT
