There continues to be technical improvements among some of the beaten up international/emerging equity markets.
This is most evident as the relative strength (vs. the S&P 500) charts show a bullish reversal of trend and points to at least continued near-term outperformance.
Within domestic equities there appears to be a similar changing of the guard as technology (via QQQ) looks to have emerged as a new leadership sector as it has broken through its Sep. 2012 relative strength downtrend line (vs. the S&P 500) and has now clear the 50% Fibonacci retracement of its 2000-2002 decline.
These developments do not mean that all is unwell for the S&P 500. In fact, SPY has broken out to all-time highs and looks poised to go higher.
PowerShares QQQ (QQQ): There have been some significant bullish developments of late for QQQ. First, the relative strength breakout through the Sep. 2012 downtrend line suggests that QQQ is now becoming a domestic leadership sector. From an absolute perspective, important resistance has also been cleared, which corresponded to the Sep. 2012 high (70.58) and the 50% Fibonacci retracement of the 2000-2002 bear market. The breakout of the Dec. 2012 uptrend channel targets a move to 75. Secondary resistance is purely base on round number psychology (80).