STOCKS OFF TO A STRONG START -- WITH ENERGY, FINANCIALS, INDUSTRIALS, AND MATERIALS LEADING IT HIGHER -- GOLD IS EXPERIENCING SOME PROFIT-TAKING

STOCK INDEXES TEST SOME MOVING AVERAGE LINES...  Today's strong price action suggests that stock indexes are trying to extend their April rebound.  All major stocks got off to strong start.  Chart 1 shows the Dow Industrials rising more than 2% today and nearing a test of its 50-day average (blue arrow).  The Dow is also nearing a test of its late February intra-day low at 24,700 (blue circle).  Chart 2 shows the S&P 500 also testing its 50-day line and its late Febuary low at 2855.  The Nasdaq has been the strongest of the three major stock indexes.  Chart 3 shows the tech-driven Nasdaq Composite Index already trading above its 200-day moving average (red circle).

ALL ELEVEN SECTORS ARE RISING...All of the sectors SPDRs are rising today as well today.  Energy is the day's strongest sector despite another drop in the price of oil.  A strong bounce in banks is helping make financials the day's second strongest sector.   Industrials are being led higher by aerospace stocks like Boeing.  Materials are being led higher by aluminum and copper producers, while gold miners are modestly lower (along with the metal).  The day's sectors laggards include healthcare and staples which are more defensive in nature.

GOLD PULLS BACK WITH ITS MINERS...Gold prices are experiencing some profit-taking.  Chart 4 shows the Gold Shares SPDR (GLD) losing the equivalent of $31 (-2%) today but still in a long-term uptrend.   Its miners are also pulling back from overhead resistance.  My Tuesday message showed the VanEck Vectors Gold Miners ETF (GDX) trying to break through its mid-2016 peak at 31.06.  The daily bars in Chart 5, however, shows the GDX losing -3.7% today after failing to clear its 2016 peak (red resistance line).