One of the most fascinating things about market breadth is that, despite all the talk about high frequency trading (HFT) and all the distortions attributed to the endless stream of liquidity pumped into the system, it never wavers from its cyclical ways.

Based on our analysis of this behaviour, we stated last week that the market breadth pendulum has swung back close to the overbought zone, and it's time to expect a consolidation of the recent up move.

The pull-back started on Monday, and the SPX spent most of the week back inside the Cyprus box:

The DJIA remains strong, and hasn't even tested the breakout level yet:

The Qs remain in the weakest position, but managed to claw their way back within the ascending wedge:

They may be getting some help from AAPL soon, as the stock has reached the strong support zone we identified here months ago:

The long-term channels continue to point firmly up:

and our trusted market breadth indicator suggests that the tide should be turning again: