DOW ENDS WEEK ON A STRONG NOTE -- TECHNOLOGY LEADS FRIDAY RALLY

DOW ENDS WEEKLY LOSING STREAK The Dow Industrials gained 263 points today (1.02%) to end the week on a strong note.  That also ends a six-week losing streak for the blue chip index.  Chart 1 shows the Dow regaining its 200-day average on Wednesday, and ending the week right at its 50-day average.  It also reached resistance at 26,000.   Short-term indicators turned positive.  The top box shows the 14-day RSI ending over 50 for the first time in a month.  In addition, MACD histogram bars turned positive for the first time since April.  That shows a positive change in momentum indicators; and increases the odds for further gains next week.   All major stock indexes had a strong day with the Nasdaq in the lead.  Technology stocks were the day's strongest sector.

TECHNOLOGY LEADS Chart 2 shows the Technology SPDR (XLK) ending the week on top of its 50-day moving average.  It cleared its 20-day line yesterday (green line).  Prior to that, the XLK bounced off its 200-day average.  It now has to clear potential resistance at 76.54 which was formed in mid-May.