LARGE GROWTH ARE STRONGEST PART OF MARKET

FIRST TO CROSS 50-DAY AVERAGE... One of the first non-tech indexes to cross back over its 50-day moving average is the S&P 500 Largecap Growth Index. There are two important parts of that title -- large and growth. Big stocks have been doing better than smaller stocks. And large growth has been doing better than large value. The green line along the bottom of the chart is a ratio of largecap growth divided by largecap value. You can see the line turning up in mid-January. That's where the leadership is coming now on the big board.

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S&P 500 TESTING ITS 50-DAY LINE... With a lot of help from largecap growth stocks, the Dow and the S&P 500 have reached their 50-day averages as well. Both big board indexes are also challenging intial chart resistance along their February highs. They'll have to exceed those intial chart barriers to confirm last week's bottom. We think there's a strong chance they'll do it. Both stock indexes are also bouncing off chart support along the October lows. Bond yields are doing the same -- as bond prices are falling.

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BOND YIELD RISE ON BOND PROFIT-TAKING... Bond yields (on the 10- and 30-year bonds) are bouncing strongly off their October lows as well. This is also supportive to stocks -- since bond yields and stocks have been trending in similar directions. It also suggests that some money is coming out of bonds and moving back into stocks. Early signs point to a continuation of the last week's bottom in bond yields and stocks.

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