The SPX (in red) is being outperformed by small caps, transports, retailers and technology off the February bottom. It is itself outperforming the Dow. This is a bullish, growth profile. Coupled with continued strength in the US Dollar this suggests significant outperformance of the US economy and US Dollar denominated assets. Further, this profile does not correlate with the prevailing worries over the quality of the economic recovery. Where sentiment and market performance are out of sync there may be opportunity present.
A benign jobs number may send this market to new highs soon. Retailers and Small Caps have already made new highs while Regional Banks (KRE) and Transports (IYT) are very close to doing so.
Persistent fear as measured by the Put/Call ratio may provide the fuel needed for a renewed upleg to the former highs and beyond.
Check out The BullBear Market Report Weekend Update this Saturday for more along these lines.