STOCKS ARE OFF TO A STRONG START -- THE DOW AND S&P 500 REGAIN MOVING AVERAGE LINES -- THE NASDAQ HOLDS 50-DAY LINE -- ENERGY, FINANCIALS, MATERIALS, AND INDUSTRIALS LEAD THE MARKET HIGHER -- CHINA LEADS REBOUND IN EMERGING MARKETS
DOW REGAINS ITS 200-DAY MOVING AVERAGE... Stocks are off to a strong start today. Wednesday's late selloff pushed the Dow below its 200-day average. Chart 1, however, shows the Dow Industrials regaining that long-term support line this morning. Chart 2 shows the S&P 500 regaining its 50-day line as well. That's another important support line. Chart 3 shows the Nasdaq Composite bouncing off its 50-day line. How the week ends is always more important than what happens during the week. And it appears to be ending on a strong note. Eight of eleven sectors are in the black today with the biggest gains in energy, financials, materials, industrials, and cyclicals. The two laggards are staples and utilities, which are defensive in nature. That adds to today's more optimistic tone. A rebound in Chinese stocks is giving a boost to oversold emerging markets. The eurozone is also having a strong day. A pullback in the dollar may be lending some support to foreign shares and large multinationals in the states. We'll watch how the markets close the week and quarter and take a more in-depth look at things over the weekend.
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Chart 1
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Chart 2
