Dr. Kris'  Instablog

1:20 pm ET: The major averages are riding on the coattails of yesterday's monster advance, but the negativity seen in the market internals is telling us that this rally could be nothing more than a minor blip in the early summer sell-off. We'll need to see the major averages break overhead resistance before we can say the bulls are in control: SPX 1343, DTX 510, Nasdaq 2900, DJIA 12600. The 21 level on the VIX has been an area of major support and we'll also need to see it fall below that level, too. 'Til then, bulls should be sitting on their hands or better yet, taking that summer vacay. Should last year's movement be any indication, we shouldn't see a rally begin for another week or so, and even then, it could be short-lived just like it was last year.

On the sector front, investors continue to seek safe income havens. Utilities are today's market standout sector with individual names dominating the new high list. The largest gainers include Nextera Energy (NEE, +1%) and Sempra (SRE, +1.4%). The sector ETF, the XLU, has broken out to a new high. The majority of these utility stocks sport dividend yields around 4%; the yield on the XLU is 3.7%.

On the downside, oil, retail, and precious metals and their miners are among the biggest losers. Gold exchange traded instruments dominate the trading in the ETF/ETN space. The chart of the GLD, the most heavily traded gold ETF, is showing major support at the $150 level. Should the stock fall below this would be the signal for the bears to begin stepping in.