Last week's sell-off extended into today's morning session but abruptly turned around when the bulls came charging back. While most of the major averages were able to climb back into the green, the inertia on the Dow Transports appeared to be too much for the bulls to overcome. This is not a good sign and today's rally could be just a one-day event. While the market internals aren't bearish, they're not very bullish, either. Maybe the dog days of summer are upon us...

Stepping up: China, Africa jump to new highs
Chinese etfs have been soaring recently and today both theiShares China Large-cap etf (FXI, $41; Yield = 1.7%) and the SPDR China etf (GXC, $82; Yield = 1.8%) both broke out to new highs on heavier than normal volume. In fact, there isn't one long-based Chinese etf that hasn't been going nuts. I don't know when the honeymoon will end but it sure doesn't appear to be anytime soon. For those of you who are in either of the above-mentioned funds, please note the next levels of major resistance: $85 for GXC and $42 for FXI.

Emerging markets have also been out-performing and today two Africa funds broke out to new highs: Market Vectors Africa fund (AFK, $34; Yield = 2.4%) and iShares S. Africa fund (EZA, $72; Yield = 2.2%). Both of these charts are quite bullish and many Wall Street pundits are saying that Africa is the place to be.

Falling down: Building stocks continue to tumble
If you had been paying attention to building and construction stocks, you wouldn't have been shocked to hear that pending home sales were down much more than expected for the month of June, as reported early this morning. The following stocks have been in free-fall for months and continue to slide to new yearly lows:
1. Window & door maker PGT (PGTI, $7.39)
2. Gypsum wallboard maker Continental Bldg (CBPX, $12.58)
3. Siding & fencing maker Ply-gem (PGEM, $8.84)
4. Modular carpet maker Interface (TILE, $16.07)

Today's break-down in the Home Builder etf (XHB) indicates further downside for this industry group.