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The bulls are in control, according to our survey of ETF proxies for the major asset classes.

As detailed below, sellers appear to be in the minority these days. The leading exception is found in U.S. bonds broadly defined, where a standoff between the bulls and bears drags on. Otherwise, optimism has broken out across the major asset classes.

We’re not complaining, but a party that reaches into virtually every corner of the capital and commodity markets raises questions about what comes next. Let’s just say that this is a good time for rebalancing your portfolio. Whenever you can adjust the asset mix on your terms, it’s a good day.

But gift horses don’t last forever, at least not in ample quantities. On the other hand, momentum is strong and it's usually a force to be reckoned with. In any case, let’s take a closer look at the party already in progress…

click to enlarge images

US STOCKS

Vanguard Total Market (NYSEARCA:VTI) • Benchmark: MSCI US Broad Market Index

The bulls have retaken the 50-day moving average line of defense for the second time this year...

VTI.GIF

FOREIGN DEVELOPED MARKET STOCKS

Vanguard Europe Pacific (NYSEARCA:VEA) • Benchmark: MSCI EAFE

A similar charge higher is underway in foreign developed-market stocks...

VEA.GIF

EMERGING MARKET STOCKS

Vanguard Emerging Markets (NYSEARCA:VWO) • Benchmark: MSCI Emerging Market

The skyward bias is even more pronounced in emerging market equities...

VWO.GIF

US BONDS

Vanguard Total Bond Market (NYSEARCA:BND) • Benchmark: Barclays US Aggregate

But the trend looks shaky for broadly defined investment-grade US bonds, where the 50-day moving average continues to trail the 200-day average...

bnd.GIF

INFLATION-INDEXED US TREASURIES

iShares Barclays TIPS Bond (NYSEARCA:TIP) • Benchmark: Barclays US TIPS

Inflation-indexed Treasuries, by contrast, are strong compared with conventional fixed-income securities...

TIP.GIF

HIGH YIELD BONDS

SPDR Barclays High Yield Bond (NYSEARCA:JNK) • Benchmark: Barclays High Yield Very Liquid

Technical strength is nothing new for junk bonds either...

JNK.GIF

COMMODITIES

iPath Dow Jones-UBS Commodity (NYSEARCA:DJP) • Benchmark: DJ-UBS Commodity

Commodities have had a strong run recently as well...

DJP.GIF

REAL ESTATE INVESTMENT TRUSTS

Vanguard REIT (NYSEARCA:VNQ) • Benchmark: MSCI US REIT

Meanwhile, the recent stumble in REITs looks like ancient history once more...

VNQ.GIF

FOREIGN DEVELOPED MARKET GOVERNMENT BONDS

SPDR Barclays Int’l Treasury (NYSEARCA:BWX) • Benchmark: Barclays Global Treasury ex-US Capped

In contrast with US bonds on the defensive, foreign fixed-income in mature markets is enjoying a nice run, thanks in no small part to the weakening dollar this year...

BWX.GIF

EMERGING MARKET GOVERNMENT BONDS

Van Eck Market Vectors Emg Mkt Local Currency Bond (NYSEARCA:EMLC) • Benchmark: J.P. Morgan GBI-EMG Core

There's no shortage of buying in the land of emerging market bonds either...

EMLC.GIF

FOREIGN GOVERNMENT INFLATION-LINKED BONDS

SPDR DB International Inflation-Protected Bond (NYSEARCA:WIP) • Benchmark: DB Global Government ex-US Inflation-Linked Bond Capped

It's also safe to say that foreign inflation-linked bonds take a back seat to no one when it comes to rising markets of late...

WIP.GIF

FOREIGN CORPORATE BONDS

PowerShares International Corporate Bond (NYSEARCA:PICB) • Benchmark: S&P International Corporate Bond

Finally, on the subject of technical strength, no one will confuse recent trading in foreign corporate bonds for anything less than a market dominated by the bulls...

PICB.GIF

Charts courtesy of StockCharts.com

Source: Tactical ETF Review: Good Time for Portfolio Rebalancing