Bull Market Remains Alive

After weeks of sideways battles, the bulls finally stepped up.

Risk assets had been testing key levels, and the market was stuck in a tug-of-war.

But now, buyers are taking control — and it’s happening where it matters most.

Three groups that stand out are Small Caps, Transports, and Emerging Markets.

Each of these areas is economically sensitive and critical for gauging risk appetite.

Earlier this year, they all broke out of multi-year bases, cleared their 2021 cycle highs, and then pulled back to test them.

The rule was simple: hold these levels, and the bull case remains intact. Break them, and trouble could follow.

The good news? They held.

Former resistance turned into support — classic polarity in action.

Take the Russell 2000 $IWM.

The riskiest, smallest U.S. stocks are bouncing at that 245 level.

They didn’t just avoid a failed breakout — they’re moving higher.

Transports are following the same play.

The stocks that keep the economy moving are now ripping off support.

Emerging Markets?

They’re holding up as well.

These are the riskiest regions in the world, yet they’re showing the bid where it counts.

After a messy, volatile Q1, this is a clean, decisive bullish step.

Tops that once looked threatening are now failing.

Early momentum signals are starting to appear.

The risk-on tide is back.

I’ve been buying pockets of strength selectively, waiting for these confirmations.

That’s how you stay ahead in a choppy market — let the charts lead the way, and move with conviction when the proof is there.

Stay sharp 😉

Alfonso De Pablos, CMT

Director of Research, All Star Charts

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