Over the last 7 trading sessions, the stock market continued to creep higher, reaching a new resistance area at 2800 that marked the pivotal point of the breakdown of last fall. Internal momentum is still very strong: the cumulative advance/decline line has definitively surpassed the highs reached at the end of last September.This impressive recovery, accompanied by strong breadth, indicates that a new economic and financial cylcle is born at the end of last year and is fueled by reflation, this is confirmed by the Dow Jones Utilities Index. Our model has started to deteriorate after such a strong upmove but hasn’t flashed any dangerous speculative activity yet.