STOCK INDEXES ARE STILL CLIMBING -- NASDAQ HITS NEW RECORD -- S&P 500 TRADES AT FIVE-MONTH HIGH -- CHIP STOCKS FINDING SUPPORT ABOVE 200-DAY LINE -- FINANCIALS ARE BOUNCING AGAIN -- BANK OF AMERICA LEADS BANKS HIGHER
MAJOR STOCK INDEXES ARE STILL CLIMBING ... All three of the major U.S. stock indexes are building on last week's gains. Chart 1 shows the Dow Industrials moving further above 25K and nearing a test of its June high. The Dow is being led higher by Johnson & Johnson, DowDuPont, United Technologies, Microsoft, and Coca Cola. Chart 2 shows the S&P 500 trading above its March intra-day high at 2801, which puts the benchmark index at the highest level in more than five months. Nine of eleven SPX sectors are in the black, led by materials, staples, technology, and healthcare. Utilities and REITs are the only two sectors in the red. Chart 3 shows the Invesco Nasdaq 100 (QQQ) trading at a new record high. The QQQ is being led higher by internet, software, and semiconductor stocks. Small caps are also having a strong day.
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Chart 1
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Chart 2
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Chart 3
SEMICONDUCTORS CONTINUE TO HOLD 200-DAY LINE ... While indexes covering internet and software stocks are hitting new record highs, semiconductors remain in a corrective mode. Chart 4, however, shows the PHLX Semiconductor iShares (SOXX) continuing to find support above its 200-day moving average. A move above its July high would be positive sign for that group and the technology sector. As well as the market in general.
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Chart 4
FINANCIALS ARE BOUNCING AGAIN ... Financial stocks are having another strong week. Chart 5 shows the Financial Sector SPDR (XLF) trying to clear its 50- and 200-day moving averages. To turn its trend higher, however, the XLF also needs to clear its six-month down trendline. It's being led higher today by investment service and insurance stocks. Yesterday's gain was led higher by big banks which are the biggest part of the financial sector (44%). Chart 6 shows Bank of America (BAC) already breaking through its falling resistance line. It remains to be seen if that strong performance can be matched by some of the other big U.S. banks.
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Chart 5
