Eoin Treacy's view Here are some markets that are noteworthy for their relative strength despite the fact that most other markets have moved into reactionary phases.

Euro Stoxx Bank Index - found support near the June and December lows near 150 and posted an upside weekly key reversal. It is following through this week and is now testing the medium-term progression of lower rally highs. However, a sustained move above 200 is still required to indicate a return to medium-term demand dominance.

Spain - similar to above.

Italy - rallies to test the upper side of the 8-month range and a clear downward dynamic would now be required to check potential for some further upside.

Greece - posted an upside weekly key reversal last week and is following through this week. A clear downward dynamic would now be required to question current scope for some further upside.

Portugal - found support last week above 7000 and has rallied to break the short-term progression of lower rally highs. A sustained move above 8000 would still be required to indicate a return to medium-term demand dominance.

Vietnam - breaking out of the latest short-term range within the overall lengthy base formation. A sustained move below 475 would be required to question scope for some additional upside.

In conclusion, all of the above are noteworthy for their new found relative strength, particularly against a background where most stock markets have begun to pull back following impressive advances over the last few months. These laggards are likely beneficiaries of short covering. I believe it is reasonable to assume that pair traders could have been long core Eurozone indices and short the periphery and are now reversing their positions.