STOCKS ARE ENDING WEEK AND QUARTER ON A FIRM NOTE -- ALL THREE MAJOR STOCK INDEXES HAVE KEPT THEIR 2019 UPTRENDS INTACT -- THE DOW TRANSPORTS MAY MAKE ANOTHER RUN AT THEIR 200-DAY LINE

MAJOR STOCK INDEXES MAINTAIN THEIR 2019 UPTRENDS ... Major U.S. stock indexes appear on track to end the week and quarter with their 2019 uptrends intact. Chart 1 shows the Dow Industrials in a sideways trading pattern over the last month. This week's pullback bounced off its (blue) 50-day average. And it appears to be regaining its (green) 20-day line today. It still needs to clear its first quarter highs to resume its uptrend. But it's 2019 uptrend in still intact. Chart 2 shows the S&P 500 finding support at its green 20-day average; and remaining well above its 50- and 200-day lines. The SPX also remains above chart support near 2800. Chart 3 shows the Nasdaq Composite Index still trading above its green 20-day average. It look at midweek like the Nasdaq (and other stock indexes) might retest its (red) 200-day line.. But it's ending the week well above that long-term support line. Falling bond yields earlier the week caused some profit-taking in stocks. A slight rebound in bond yields may be helping stabilize stock prices.

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Chart 1

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Chart 2

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Chart 3

UPS AND KSU LEAD TRANSPORTS HIGHER ... Relative weakness in transportation stocks has been one of the concerns about the strength of the stock market uptrend. But that situation may be taking a turn for the better. Chart 4 shows the Dow Transports trading back above its 50-day moving average which puts it in position for another attempt to clear its 200-day average (red line). A decisive close above its red line would make Dow Theorists a lot happier. Two of the stocks leading it higher are shown next. Chart 5 shows United Parcel Service (UPS) already trading above its 200-day average. It needs only to clear its early March high to put the stock in an uptrend. Railroad stocks also remain strong. Chart 6 shows Kansas City Southern (KSU) nearing a test of its September high near 119. A close above that previous peak would put the rail stock at an all-time high.

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Chart 4

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Chart 5

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Chart 6

CATERPILLAR LEADS INDUSTRIALS HIGHER ... Industrial stocks are among today's sector leaders. Chart 7 shows the Industrial Sector SPDR (XLI) bouncing off its 50-day average this week; while remaining above its 200-day line. It's blue 50-day line has also crossed over the red 200-day line for the first time since November. The gray area is a relative strength ratio of the XLI divided by the S&P 500. After a period of relative weakness during March, the industrial sector is starting to do better. A rebound in Boeing is helping. But so are stronger transportation stocks included in the XLI which include airlines. The XLI is also getting a boost from Caterpillar (CAT) which is its biggest percentage gainer today. Chart 8 show the stock trading above its 200-day average for the first time in nearly a month. It's also today's leading gainer in the Dow Industrials.

Chart 7

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