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Market Notes: Market Poised To Take A Breather -- February 12

|Includes: KBE, Financial Select Sector SPDR ETF (XLF), XLK

3:25 pm ET: While the S&P 500 (SPX) continues to melt up, the Dow Transport Index (DTX) is stalling. Since the DTX is a leading indicator of market direction, what this stall is suggesting is an end to the current leg in the rally. Don't worry! This doesn't mean that the rally is over; rather that the market is going to take a step back while it digests current gains. Technically, we're probably looking at a retest of the 1495-1500 level on the SPX. This sounds bearish on the surface but it's not--just standard operating procedure. Right now everything is coming up roses for the bulls as strength is seen across all sectors including tech (NYSEARCA:XLK) and financials (XLF, KBE), both bellwethers of market strength. In fact, this market is so strong that last night's news of North Korea's nuclear test wasn't enough to disrupt today's advance. We'll see if tonight's State of the Union address will have any influence.

A short blog today. Got to dash to a meeting...