S&P 500 LEADS MARKET BOUNCE -- OIL FALLS BACK BELOW $30
BOUNCES OFF 50-DAY AVERAGE... The S&P 500 was the biggest percentage gainer today among the major stock averages. Its a good thing too, because the benchmark index bounced off its 50-day moving average -- and potential chart support along the 850 level. [The Dow is also holding over its 50-day line]. Chart 2 shows the S&P 500 also bouncing off its 20-day moving average line. Big board volume also picked up on today's price gain. And, breadth was surprisingly good. Sectorwise, the biggest gainers were in energy, financials, and utilities.
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OXY LEADERS ENERGY GROUP... In a strong oil group, Occidental Petroleum had an especially strong day. The monthly chart shows OXY hitting a new record high. Other oil leaders were Ashland and Unocal.
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PROGRESSIVE CORP LEADS FINANCIALS... Progressive Corp. was a leader in a strong financial group. The monthly chart shows the insurance stock breaking out to a new record high. Other financial leaders were Capital One and Morgan Stanley.
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WILLIAMS COS. LEADS UTILITIES... Utilities had another relatively strong day. Williams Cos. was one of the best performers. Its chart shows it breaking out to the highest level in months -- on good volume. A couple of the other percentage leaders were CMS Energy and Centerpoint Energy.
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REITS CLIMBING AGAIN... REITs are on the move again. The Morgan Stanley REIT Index appears to be consolidating within an uptrend that started in late January. The RMS recently climbed over its 200-day moving average -- and exceeded its January high. The weekly chart shows the RMS recently hitting a six-month high.
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OIL BACK UNDER $30... Nearby oil prices tumbled $1.26 today to close back under $30. Last Friday, we expressed the view that any short-term bounce in oil could be capped in the $31-34 region. If the oil bounce is failing, that would give a boost to stocks.
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