VERY IMPRESSIVE DAY
DOW JUMPS 215 POINTS... The Dow (and the rest of the market) had the most impressive day since this rally started three weeks ago. Breadth was positive and volume was good. As we suggested earlier today, we believe this is probably the start of a second upleg, which could carry the Dow to the top of its eight-month trading range near 9,000.
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NASDAQ GAPS OFF 200-DAY LINE... Earlier today we showed the Nasdaq Composite gapping off its 200-day average. This evening we're showing the Nasdaq 100, which was the day's strongest index. The chart also shows the NDX leaving a bullish "island reversal" behind. It's normally a good sign for the market when the big techs are leading. Some of today's biggest winners were Cisco, Intel, and Microsoft. [Please see our update posted earlier today which discusses the positive chart pattern in Microsoft].
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OIL PRICES FALL ANOTHER DOLLAR... Oil prices tumbled another 1.22 today to 28.56. It looks like the oil rally has failed, which is bullish for stocks. Gold fell almost five dollars. The dollar was up, while bond prices were down. All are positive intermarket signs. This was a very broad-based rally. Some of the biggest gains were seen in biotechs and brokers. The biggest technology gainer was the SOX Index, which gained 6%. All three indexes are trading over their 200-day moving averages. All in all, a very strong day. We think there's more to come.
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