Watch These Lagging Sectors

For the second day in a row, most of the major averages and the A/D ratios were slightly negative. Tuesday?s leaders, the Dow Transports and small-cap S&P 600 were both lower on the day with the Dow Utilities gaining 0.49%. The McClellan oscillator has deteriorated further as it is now down to +58 after peaking at +181 on August 19. This divergence is consistent with a pullback but the bullish A/D line analysis indicates that a correction will be a buying opportunity. The recent sharp increase i...