Broad-Based Strength Bullish

Chuck Carlson, in his current market commentary, comments about how the Dow Jones Industrial Average recently went to its highest level in nearly five years. And the Dow Jones Transportation Average recently went to its highest level ever. Small-cap stocks continue to post new highs.

Clearly, the market is not being driven by gains in just a few groups. Take a look at the list of stocks making new highs. What you see are stocks from virtually every industry sector. From banks, REITs, and insurance companies to industrial stocks, health care, railroads, and consumer stocks - all doing well.

Such broad-based strength is generally a positive for the market, especially when it comes to assessing the sustainability of the current rally.

What is especially impressive is that stocks from industry sectors seen as vulnerable due to high interest rates - most notably financials - have posted strong gains so far this year.

That interest-rate-sensitive stocks are doing well may indicate that perhaps interest rates won't be tending much higher at least in the near term.

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