BIG TECHS CONTINUE TO LEAD MARKET BOUNCE -- GLOBAL MARKETS REFLECT MORE OPTIMISM

BIG TECHS CLIMBING OVER 50-DAY LNES... The most-actives list on the Nasdaq is a who's who of big technology stocks. A number of them are climbing back over their 50-day moving averages -- which is a sign of market leadership (and represents at least a short-term buy signal). Cisco is not only back over its 50-day line -- but its 200-day line as well. Oracle stayed over its 200-day line throughout its correction, but is back over its 50-day line today. Sun Microsystems is climbing above its 50-day line -- turning its short-term trend higher. Other high-volume tech gainers today are Intel and Microsoft.

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SOX LEADERS... Semiconductor stocks are among the technology leaders today as well. Altera and Xilinx are crossing over their 50-day lines today. Linear Technology is even more impressive -- and is crossing its 200-day line. Over on the big board, Texas Instruments is having a good relative strength day -- on good volume.

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BOND YIELDS ARE UP... Last Friday, we showed bond prices backing off from overhead resistance and looking overbought. In today's trading, bond prices are lower once again -- and yields are higher. The next chart shows the yield on the 10-year T-note rising up to its 50-day line. An upside breakthrough would be another sign of weakness in bonds -- and strength in stocks.

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GLOBAL BOUNCE CONTINUES... While the U.S. markets were closed on Monday, foreign markets rallied. They're up again today -- and are helping to set a positive tone for our markets. The next chart shows the Hong Kong market hitting a new monthly high today. It's daily MACD lines have turned positive. Just below that, you'll see that the SOX Index looks very similar. We recently commented on the close correlation between the Hong Kong market and the SOX Index (because most semiconductors are made in Asia). We believe one of the factors behind this week's global bounce is some easing in geopolitical concerns. Gold prices are falling another $7.00 today as another sign of easing pressures. Crude oil prices also lost ground yesterday -- and are slighter lower again today. The last chart shows German iShares reflecting a bounce in European markets as well. It seems the world is breathing a little easier today -- and buying stocks.

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