The bull is alive and well with an uptick of new highs from key stocks and sectors.

Last week’s heavy-volume buying gives us an indication that institutions are stepping up in support of these prices.

These improved market dynamics have led us to adjust our market bias to Buyer’s Caution. What goes high often goes higher. We never argue with the market.

What’s important now is that we see quality stocks supported with breakouts. Not only is this good for our own breakout buying strategy, but the market would be prone to reversal without it.  

On the leadership front, we’re seeing a return of tech names, such as Apple, Inc., which bounced back from its pullback to peg a new high last week.

The tech-laden Nasdaq and Russell 2000 each made new yearly highs last week, as did the retail, biotechnology, airlines and defense sectors.

Strong basing action from financial stocks also gives this market some backbone. Without the support of banks we’d be less confident in this bull.

In fact, every stock sector is trending well above its major moving averages.  

But it’s important to keep it in perspective that our analysis and bias is reset every week and always prone to change, just as the market is.

While it’s true that some very sharp and successful speculators have come out as bearish this year, unless we have the price and volume clues to back it we go with what we see.