More still a bull in bear’s clothing:

I know it still looks bad with leaders like Apple, Facebook and Google losing price momentum along with the Dow Transports still below both its 50 and 200 day moving averages (MA). We also still have the Russell 2000, the biotech BTK index and the semiconductor SOX index – all just below their related 50-day MA – but – still above their related 200 day MA.

Investors should ignore the bears because the North American financial sectors still display no technical damage – with our own S&P/TSX Financial Services sector and the Sector SPDR Financial ETF (XLF) still above both their 50 & 200 day MAs. This leadership is important because the financial sector leads all bull and bear market cycles.

Our chart – once again - displays two US financial bellwethers - Goldman Sachs (GS) and JP Morgan (JPM) on a daily bar with both just backing away from recent new 52-week highs. Note both are still trading above a rising 50-day MA – so I still think we stay in May.