Guy,

Yes indeed the rallies from the China sell-off in Febuary were narrower.......many less stocks doing the heavy lifting, even in light of the "equal weight' indices still the place to be. However, I do believe the the sell off in August - 11.24% intra day from Dow hi to low - was in fact the 10 percenter all were looking for. Confirmed by my internals mentioned in my post, this was the pull back to answer......Jeez I wish we had a buying opportunity like October 2002.

New leadership may emerge. Right now, transports are in the "sweet spot".....good relative strength, momentum coming in, and in very good field postion. They should head north in a big way, FDX today not withstanding. The IYT (Ishare Transport) did have an upside break out yesterday at $89 and I think there will some follow through. Energy and basic materials look strong, having retained their superior relative strength, but remember......they are basically commodiites and subject to high volatility.

BZ