STOCKS OFF TO A STRONG START -- DOW AND S&P 500 HOLD CHART SUPPORT -- SMALL CAPS ARE HAVING A STRONG DAY -- BOEING AND SOUTHWEST AIR LEAD INDUSTRIALS

DOW AND SPX HOLD CHART SUPPORT... Stocks are off to a strong start for the week.   And are holding some important support levels.  Chart 1 shows the Dow Industrials bouncing off potential chart support at its 50-day average (blue line) and its early June intra-day low at  24,800.  It's getting a lot of help from a 10% gain in Boeing (BA).   The Dow, however, remains below its 200-day average (red line).   Chart 2, however, shows the S&P 500 trading back over its 200-day line; and remaining above its 50-day average (blue line) and its June intra-day low at 2965.  Today's rebound keeps the SPX in a sideways trading range that's been in effect for the last three weeks.   All eleven sectors are rising today with industrials and materials in the lead.  Smaller stocks are having an even stronger day.

RUSSELL 2000 ISHARES GAIN GROUND... Chart 3 shows the Russell 2000 iShares (IWM) outpacing large caps today.   The IWM is bouncing off chart support near its 50-day average, its June intra-day low near 133, and a rising trendline.  Small stocks have been lagging behind large stocks during most of June.  The IWM, however, remains below its 200-day average.  It would have to clear that red line and chart resistance near 146 to turn its trend higher.

Chart 3

INDUSTRIAL STRENGTH... Chart 4 shows the Industrial SPDR (XLI) (today's strongest sector) bouncing off potential chart support along its June low and late April peak; and its 50-day average.   Industrials have been lagging behind the rest of the market for most of June.  It's getting most of today's strength from Boeing and Southwest Airlines.  Chart 5 shows Boeing (BA) bouncing 10% off its June low near 166.  Chart 6 shows Southwest Airlines (LUV) bouncing 9% off its 50-day average.  Stronger airline stocks are also giving a boost to the Dow Transports which are having a relatively strong day.   Although today's stock rebound hasn't produced any trend changes, it is helping to keep the market's uptrend intact.  It's also encouraging to see some of the market's weaker groups attracting some new buying.