Imagine the chair as the market.

Despite what many believe as impossible odds, the market sits, although somewhat precariously, near the record highs.

The water streams down, representing the market’s chance of slipping.

Yet, the rockledge offers the chair enough leverage to resist the water’s gravity.

The hat hanging on the back of the chair is we investors.

We have put our faith against the odds of slipping. At this point, we assume that the water will dry up and the chair will take root.

After all, the market has endured terror attacks, government scandals and isolationist policies.

Sister Semiconduictors, A.K.A Wonder Woman has lept tall buildings in several bounds. Nasdaq 100 consolidates near its new all-time highs.

The Dow looks one nod away from moving above 212 and establishing its new all-time high.

The S&P 500 may not have “launched from 240, but it has certainly snapped.

Great news for the momentum stocks or as Geoff mentioned, “those in motion that have stayed in motion.”

I do not mind sitting in that chair. However, I require a cushion for my bottom.

How thick does the ideal cushion have to be to offer our bottoms more support?

Two crucial members of the Modern Family are the cushion bearers the market and our bottoms desire.

The Russell 2000 or the small cap companies located and operating throughout the U.S. personify the Family’s Granddad for very important reasons.

For the next leg of this rally to occur, IWM must show up with a convincing cushion. That would prove that the market has faith beyond the tech and FANG stocks.

IWM is the lining of the cushion. A run over 140 that sticks will convince investors that the U.S economy will continue to grow.

A rally in the Russell’s could also signify the beginning of the 5th Stage of Disbelief. Remember, this market begs for a dramatic finish.

Yet, we have time to worry about that.

If the Russell’s are the lining of the cushion, then the Transportation sector is its stuffing.

Transportation (IYT) is the foundation of infrastructure. IYTs top holding is FedEx. If FDX is any precursor, that stock sits on new all-time highs.

The next top 4 holdings are Norfolk Southern, Union Pacific, United Parcel Service and Alaska Air group. As company names suggest, essential in moving goods, services and people.

All of the above, except UPS, have performed well thus far.

Should the market endure Comey and then the Fed meeting next week, IWM and IYT could carry the chair (market) and that hat (we investors) towards “outrageous fortune.”

S&P 500 (SPY) The launch from 240 put 245-246.50 as a target before Bollinger band resistance sets in.

Russell 2000 (IWM) With a monthly channel top at 142-143 level, the test to those highs seems more likely than not. So for now, on alert if this fails 137.50, otherwise, thinking more up.

Dow (DIA) 211 pivotal

Nasdaq (QQQ) If Semi’s are Wonder Woman, this is Zeus.

KRE (Regional Banks) 51.00 is a super important support level. Otherwise, 53.55 is the place to give this new life

SMH (Semiconductors) Even with profit taking, this closed on new highs Subscribers: If in at 80, reached a second target and can now raise trailing stop to under 86.00.

IYT (Transportation) 168 pivotal number. Then there’s still resistance all the way up to 172.89. A failure now of 163.95 would be troubling

IBB (Biotechnology) 291-292 must hold and the elusive 300 must clear.

XRT (Retail) The 50-DMA at 42.07 if clears should be interesting. 40 massive support to hold. 41 pivotal.

IYR (Real Estate) Held all the moving averages but still in massive consolidation between 77 and 81.

XLU (Utilities) 53.50 near-term support.

GLD (Gold Trust) 121 pivotal. 124.50-125.50 next big resistance

SLV (Silver) If holds 16.50, a move over 16.75-80 would clear 200 DMA and bode well for further even bigger gains

GDX (Gold Miners) Held over the 200 DMA and 6-month calendar range at 23.50.

XME (S&P Metals and Mining) If holds 28 and clears 30 could get interesting

USO (US Oil Fund) Big volume sell-off. But not oversold.

XLE (Sel Energy Spdr Fd) You either scratched or got stopped out at 64.80 if bought over 65.57. Not ready yet

TAN (Solar Energy) Dancing around the 200 DMA. A good sign if holds and clears 18.60

TLT (iShares 20+ Year Treasuries) Starting to retract from the 200 DMA and possibly topping out ahead of FED

UUP (Dollar Bull) 25.00 pivotal, see more downside if breaks unless it gets back over 25.10