On Monday, the Transports hit a new high. But let’s wait to get a weekly close at a new high before declaring a Dow Theory confirmation.

The bears need to go to work on Junk Bonds if there is going to be a meaningful stock market decline. Yesterday’s bearish reversal puts the ball in the bear’s court.

The Leader List

Treasury Bonds dropped off the leader list. My guess is that it will be back on the leader list in a few weeks, but I do much better when I just follow the indicators. So, for now, I am dropping it according to the technicals.

This chart does not look good for gold miners, but similar to the Transports, let’s wait for a weekly close before declaring victory for the gold miner bears.