Lately I noticed many signatures from the late 2002 rally that could signal an impending break upwards. Low cap stocks are jumpy and moving off lengthy accumulation bases. Larger cap stocks seem to have higher intraday $ ranges. Inspite of layoffs and low job growth, companies are flush with cash and there has been increased share buy-back activity this year. I enclosed a QQQQ chart as a proxy for the nasdaq; recalling nasdaq stocks lead the 2003 rally. Also it seems to me that real estate is finally deflating, smart money is getting out and will have to look for other markets to nest. US multi-nationals are doing very well in foreign markets, so dividend payouts are not being effected as severly as some thought earlier. New Fed chairman will do his best to not upset his first year of tenure, so I strongly suspect rate hikes are done for now. We may have one last one since he is supposedly paranoid about inflation, but the fed will strongly signal that to be the last hike in the forseeable future. Note bonds are holding steady at a major support area, no strong sell-off yet, so my hypothesis could be correct. I also think the USD will break higher and EUR will take a nosedive shortly. After reviewing a few other external data, my opinion is that US stocks will break higher. This will probably be the climax before the final working out of the late 90's excesses.