Deron Wagner compares the relative performance of the S&P 500 SPDR (SPY) to the Financial SPDR (XLF) over the past 10 days. Unless XLF gets back in sync with SPY, he believes the relative weakness in the financial arena will begin weighing on the overall market rally very soon.

If the S&P 500 SPDR (SPY) holds its recent breakout level, and convincingly moves above last week's high within the next few weeks, it would be relatively safe to say the prior downtrend from the April 2010 highs has concluded.

The market internals provide substantial evidence of institutional accumulation. This is further supported by the clear break above resistance on three of the five major indices.

If stocks find support at yesterday's lows, and consolidate from here, odds are good the recent uptrend will remain intact.

It may be better now to focus on specific ETFs with relative strength or weakness to the overall stock market, rather than trading breakouts in the broad-based ETFs.

It now appears as though iShares Emerging Markets Bond Fund (EMB) is poised to break out above the highs of its consolidation and resume its dominant uptrend.

Due to the significant duration of the current rally it is not prudent to fight the overall market trend. But it is a good time to look for shorting opportunities, or a pullback for long entries, as the market is likely to correct soon.

The Ultra Short Yen Proshares (YCS), which has been in a major downtrend since May of this year, is showing distinct signs of what may be a trend reversal.

Select international ETFs are among the few ETFs presently trading at fresh all-time highs. As such, a pullback to their 20-day exponential moving averages could present low-risk entry points.

One of the major drags on the broad market lately has been the poor performance of the semiconductor sector. Because the semiconductor sector is so heavily weighted within the Nasdaq, this bears notice. Unless the semiconductor sector gets in gear, it will continue to hold the Nasdaq in check.