proprietary indicator suggests a pullback of about 5% in the next few weeks. Also, since the start of February, the DJ Industrials has been climbing alone. The DJ Transportation Index, more closely tied to economic fundamentals, has lagged by 5.6%. Not a good sign. This list of woes suggests a short-term correction for markets. But what will take the Dow higher after the correction? Three things: stocks are cheap, bond yields are thin and the economy is improving. Quality stocks are cheap by several measures. The Dow is trading at 13.3 times earnings, near the bottom of its long-term range, because prices have lagged earnings growth. The Dow's earnings per share is up 134% from its March 2009 lows, while the Dow's price is up 70%. True, earnings growth has plateaued in the last two quarters, but that still leaves a large gap. In the same period, corporations have drastically cut debt levels, bringing them to par with equity and the lowest level in more than a decade. Little debt, lots of profit... it's no wonder dividend yields have risen to 2.5% and are expected to rise further. Compare that to a yield of 3.2% on a similar quality 10-year bond. The view for the next few quarters is also positive from a technical standpoint. Though not quite there yet, our proprietary indicator is near Buy levels not seen since March 2009. A correction in the short term would put it firmly in the Buy camp. And while the rally