The number of new 52-week lows is a bit elevated. It isn't a good sign to see the market pushing up to new highs while the number new lows is expanding. Some caution is called for.
 

Market breadth is headed in the wrong direction as well. The bullish percents are pointed lower while the major indexes are pointed higher.

We have all seen this many times before. The market rallies to new highs, but the number of participating stocks declines. It usually ends with a pullback in the indexes, but not always. Sometimes the tables turn and the weaker stocks start to participate.

The level of new 52-week lows will be the factor that tips the balance. If these new lows continue to expand while the bullish percents continue to point lower, then I will get more defensive with my holdings.

Rates

Fixed-income and high-yield ETFs remain left of center. This means that stocks are still favored over these ETFs.

The Leader List

Home Builders dropped off the leader list today.

The home builders don't look too bad with prices still above the 50-day. This ETF could be building a base for the next breakout. But with the relative strength and volume are weakening, I would say these shares are not leaders at the moment.

Outlook

The long-term outlook is positive.

The medium-term trend is up.

The short-term trend is up as May-24.