Meanwhile, John Murphy notes:
The TTH reached a new five-year this week, and its RS line hit a four-year high.
The TTH:SPX ratio peaked in 2000 and dropped until the end of 2005. It started rising in 2006. The purpose of the chart is to also show that the telecom group is still relatively cheap historically (it's regained only a third of its 2000-2002 losses).
It's not hard to see where a lot of the strength is coming from. Chart 3 shows AT&T trading at a five-year high. The green circle shows the upside breakout that I described last July. AT&T is the biggest holding in the TTH. The second biggest is Verizon, which may be on the verge of a bullish breakout of its own.
http://stockcharts.c...177864&r=62.png
Edited by Rogerdodger, 25 March 2007 - 11:58 AM.
