AMAZON.COM AND LENNAR LEAD CONSUMER DISCRETIONARY SECTOR HIGHER -- ADOBE AND CISCO LEAD TECHNOLOGY -- DRUG STOCKS BOOST HEALTHCARE -- MERCK IS LEADING -- NASDAQ AND S&P 500 REGAIN 50-DAY LINES AS ALL ELEVEN SECTORS GAIN GROUND
CONSUMER DISCRETIONARY SPDR REGAINS 50-DAY LINE... Stocks are having another strong day today with all eleven market sectors in the red. Cyclical stocks are helping lead it higher. Chart 1 shows the Consumer Discretionary SPDR (XLY) trading back over its 50-day average (blue line). Two of its biggest gainers are shown below. Chart 2 shows Amazon.com (AMZN) bouncing off its 50-day average. Chart 3 shows Lennar (LEN) rising to the highest level in ten months. Lennar is part of the homebuilding group which has been the strongest part of the XLY this year.
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Chart 1
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Chart 2
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Chart 3
ADOBE AND CISCO LEAD TECH SECTOR HIGHER ... Technology stocks are also leading the market higher today. Chart 4 shows the Technology Sector SPDR (XLK) regaining its 50-day average. Chart 5 shows Adobe (ADBE) gapping higher today after bouncing off its 50-day line. Chart 6 shows Cisco (CSCO) gapping back over its 50-day average.
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Chart 4
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Chart 5
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Chart 6
DRUGS LEAD HEALTHCARE HIGHER -- MERCK HAS STRONG DAY ... Healthcare is also having a strong day. Despite today's rebound, Chart 7 shows the Health Care SPDR (XLV) still trading below both moving average lines. Drug stocks are leading it higher today. Chart 8 shows the Pharmaceutical Index ($DRG) rallying right up to its red 200-day line. A close above that resistance line would be a positive sign for the drug group. Chart 9 shows Merck (MRK) already trading well above its red line; and trying to clear its blue 50-day average. Pfizer (PFE) is also having a strong day. Healthcare has been the year's weakest sector.
NASDAQ AND S&P 500 REGAIN 50-DAY LINES... Stocks are continuing the rebound that started a couple of days ago. The Dow is trading back over its 200-day line. And the Nasdaq and S&P 500 have regained their 50-day averages while remaining above their 200-day lines (Chart 10). And all sectors are gaining ground. That's helping keep the 2019 stock uptrend intact.
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Chart 7
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Chart 8
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Chart 9
