Rotation has been the key to this year’s resilient rally. Whenever a leading group has cooled off a new group has emerged. In early 2013, financials, construction, and energy stocks pushed the S&P 500 higher. Over the past few weeks we have seen money flow into the Nasdaq, with semiconductor stocks leading the way by breaking out to new highs ahead of the Nasdaq. Another key to the rally has been the constructive price action of leading groups after selling off from an extended run. Transports and financials made big runs during the first quarter, but have since been in consolidation mode, forming bullish basing patterns. iShares Dow Jones Transportation Average ($IYT) has formed a bullish base on the weekly chart, holding support of the rising 10-week moving average (in teal).