I went on to do a few more indices, namely KOSPI, HSI, Nikkei 225, BSE, FTSE, JKSE and plotted them on the following chart together with STI and S&P 500.

JKSE and KOSPI are the two best performing market indices on a 10-yr annualized basis and Nikkei 225 and FTSE are the two worst performers. For simplicity sake, if $1,000 is invested in every of the above indices, the portfolio would be something like this:-The $8,000 portfolio would have grown to $24,769 today (since 1998), an annualized returns of 11.96%.

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Although not of immediate concern, some of the bullish percents are about to enter bear market (but not bull market) top territory. If January lows represent the start of a bear market then these breadth indicators should top soon. If the current rally is a continuation of the cyclical bull market then there is room for another 15-20% of gain (perhaps as much as 50% for the Nasdaq Bullish Percents). How this impacts on the market remains to be seen, but the likely outcome would be a negative divergence between breadth indicators and the market; indices make new highs as bullish percents fall. Time will tell. I'm traveling to D.C. so there will be no update tomorrow. INS appointment Friday. Get the Fallond Newsletter