We are experiencing a bullish breadth thrust. Buyers have been in control for last 10 days or so. The dip on European downgrade was bought.
The market started this bull phase in October. After the initial burst of aggressive buying the market had a dip pullback and went sideways for few months. This has resulted on many momentum stocks setting up well as they made sideways moves or pulled back near high. Many of those are now breaking out.
Some of the sectors which lead the first leg of the move had failed breakouts in recent week. Oil and gas and railroads sectors are example of that.
Buying is still concentrated near 52 week low and follow through has been better on stocks near lows.
At this stage unless there are series of 300 plus day to the downside the move can still continue. But keep a close eye on sentiments and extreme readings on MM.
There were couple of good breakouts on Friday like VPHM and ELGX.