The Market Needs a New Leading Sector

The market's short-term upward momentum may continue in the aggregate for a while, but I continue to watch my indicators for signs that a more defensive posture is warranted.

The biggest problems have to do with the readiness of speculators and smaller investors to embrace this rally and take more risk.

Last week, the ratio of Nasdaq volume to NYSE volume increased again to 1.6, well above the danger level of 1.4. This is the most negative of all my indicators and remains classified as very bearish.

The ratio of all sales by odd-lot investors divided by their purchases indicates bullishness on their part and remains classified as negative. ...