The Nasdaq is leading the S&P and DOW higher

All three stock indexes roared higher with the technology-leaden 
Nasdaq leading the way. But on a long-term basis, the DOW and 
S&P 500 are at historic highs while the Nasdaq composite is still 
below its 2000 high. The new trading range I described two weeks ago 
could still be in effect. If so, expect a drop from high in the 
trading range back down. Another possibility is that the Nasdaq 
composite, now pretty far above its trading range, will pull the 
other indexes up to continue the short-term rally.

Our stock sector relative strength table shows a similar pattern 
but with more detail. For the first time in many months, all seven 
sectors of the technology group rose in relative strength since 
July 1. The technology group was the strongest. The cyclicals group 
is split: Automobiles, Media and Leisure zoomed higher while, Basic 
Materials (mining), Real Estate and Transportation all sank. It's 
the Transportation sector's drop that is most worrisome because of 
its usefulness as a window into the overall economy's health 
(i.e., the quantity of goods shipped).
Here is the Relative Strength Chart of the Media Sector:
mediaHere is the Relative Strength Chart of the Transportation Sector:transportation

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