Yesterday was a mixed session that saw buyers nibble at the right times, preventing a more serious selloff. There was a solid move in the “Fear gauge,” Volatility Index (VIX), and put/call ratio. By the same token, new highs to lows on the New York Stock Exchange (NYSE) continued to improve.

Traditional safe havens saw the largest gains, led by Utilities (XLU). Big banks and Materials (XLB) fared well.

Key Charts

The iShares Transportation ETF (IYT) keeps rocking, adding an old-school check to the new school rally.

Midcaps extend the stealth rally into overdrive.

Today’s Session

Equity futures are down across the board.  Like yesterday, this is the perfect test for the rally, and one that I prefer.

It’s time to shake out a few weaker hands.