The Broker Dealer Index has taken the brunt of the stock market selloff of the past six (or so) months. For good reason, too: these companies bear the responsibility of most of the mortgage mess the nation currently finds itself in.
This index is a typical leader, though, and can be decent indicator for stocks, in general. The chart shows that the index recently broke out above its early April highs. This is obviously bullish.
But it’s still below some pretty significant resistance marked by the January lows and March highs. And by the looks of the stochastics at the top of the chart, it’s also getting pretty overbought.