APPAREL RETAILERS LEAD XLY HIGHER -- AIRLINES ARE HOLDING TRANSPORTS BACK -- STRONGER RAILS AND TRUCKERS ARE A VOTE OF CONFIDENCE IN THE U.S. ECONOMY

APPAREL RETAILERS LEAD XLY HIGHER... Chart 1 shows the Consumer Discretionary SPDR (XLY) trading at the highest level in three months and north of its 200-day average.  The XLY/SPX relative strength ratio in the upper box is also rising.  Apparel retailers are leading the XLY higher.  Chart 2 shows Burlington Resources (BURL) testing its 200-day average and April high.  Chart 3 shows TJX nearing its 200-day line.

AIRLINES ARE HOLDING TRANSPORTS BACK...Transports have been one of the market's weakest performers this year due mainly to weak airlines.   Chart 4 shows the Dow Jones Airlines Index (black line) holding the transports back.   Chart 5 show the Dow Jones Railroad Index testing its 200-day average.  While Chart 6 shows the Dow Jones Trucking Index testing its high for the year.   Stronger rails and truckers are a vote of confidence in the U.S. economy.