Week 6 was quite bullish. We put in a higher low on the major indices and the NASDAQ broke to a higher high. The S/P, Dow and Russell are close behind sitting right at the previous swing high. We saw a divergence on the NASDAQ internals on Wednesday, again not something you see too often. This is a sign that a tug of war still remains between the bulls and bears, even as we move higher.
The Basic Material sector performance has been strong lately. Good old Potash (POT) and Mosaic (MOS) broke out on strong volume with Intrepid Potash (IPI) close behind. The VIX has held in the mid 40s and Gold and Oil remained flat on the week.