The SPX (in red) is being outperformed by small caps, transports, retailers and technology off the February bottom. It is itself outperforming the Dow. This is a bullish, growth profile. Coupled with continued strength in the US Dollar this suggests significant outperformance of the US economy and US Dollar denominated assets. Further, this profile does not correlate with the prevailing worries over the quality of the economic recovery. Where sentiment and market performance are out of sync there may be opportunity present.

A benign jobs number may send this market to new highs soon. Retailers and Small Caps have already made new highs while Regional Banks (KRE) and Transports (IYT) are very close to doing so.

Persistent fear as measured by the Put/Call ratio may provide the fuel needed for a renewed upleg to the former highs and beyond.

Check out The BullBear Market Report Weekend Update this Saturday for more along these lines.

Good Trading!

Disclosure: No current positions.

By Steve Vincent

http://www.thebullbear.com

The BullBear is the social network for market traders and investors. Here you will find a wide range of tools to discuss, debate, blog, post, chat and otherwise communicate with others who share your interest in the markets.

© 2010 Copyright Steven Vincent - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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