The tell sector to watch here is XLF— the financials ETF, which is basically the large banks. If you remain bullish this looks to be the next sector to see rotation — that means that bulls will rotate into buying in this sector, if/when they tire of chasing the current leaders.

Conversely if you are bearish you would want to see a failure of the bank stocks to rally, on any attempted rotation, I am neither a bull nor a bear. I am following Warren Buffet who is sitting on cash, and for the first time perhaps in his lifetime sees nothing to buy! Watch the bank stocks Wednesday. They need to catch on to fuel continued strength. 

Thanks,

Joe

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