Uptrend strengthens; transports break out; financials continue to base

Breadth on the uptrend has strengthened. Transports have broken out to the upside, breaking through rectangle resistance and confirming the new high in the Dow. VIX shows signs of bottoming (VIX formed a hammer on Friday), as the fear factor may creep in during Sep-Oct.

Financials were an early relative strength leader following the March bottom. They consolidated that lead in mid-May, then resumed leadership in late July. They have been consolidating again.

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