STOCKS ENDING ON A STRONG NOTE -- AND REMAIN ABOVE MOVING AVERAGE LINES -- SAFE HAVENS LIKE BONDS, GOLD, AND YEN PULL BACK -- THREE-MONTH EXTENSION OF DEBT CEILING HELPS BOOST STOCKS
STOCKS REMAIN ABOVE 50-DAY LINES... Stocks are ending the day on a strong note. Chart 1 shows the Dow Jones Industrial SPDR (DIA) remaining above its 50-day average. Chart 2 shows the S&P 500 SPDR (SPY) bouncing off its 50-day line as well. Chart 3 shows the PowerShares QQQ ETF remaining well above that support line. A three-month extension of the U.S. debt ceiling appears to have boosted stocks. At the same time, bond yields jumped as bond prices sold off. Other safe havens like gold and the Japanese yen pulled back as the dollar stabilized. Banks and financial stocks are bouncing with bond yields, as utilities are losing ground. A rebound in the price of oil has made energy the day's strongest sector with the Energy SPDR (XLE) exceeding its 50-day line for the first time in a month. Foreign stock ETFs are higher. The Canadian Dollar hit a new high for the year and boosted Canada iShares (EWC) which are priced in U.S. dollars.
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Chart 1
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Chart 2
