MAJOR STOCK INDEXES TRADE ABOVE THEIR 50-DAY AVERAGES -- ALL ELEVEN SECTORS ARE IN THE GREEN -- SMALL CAPS AND TRANSPORTS ARE STRONG

STOCK INDEXES REGAIN THEIR 50-DAY LINES... Global stocks are starting the week on a strong note.   The three major stock indexes shown below are all trading above their 50-day moving average lines.  That strengthens their short-term trend and puts them in position to regain some ground lost during the month of September.   Chart 1 shows the Dow Industrials trading above their blue line.   While Chart 2 shows the Nasdaq Composite Index doing the same.   Chart 3 shows the S&P 500 trading slightly above its blue line which sits at 3353.  That strong action is matched by all eleven market sectors gaining ground today.   With the biggest gains in financials, energy, industrials, consumer cyclicals, and materials.   Small cap stocks are having an unusually strong day as are transportation stocks.

Chart 4 shows the Russell 2000 iShares (IWM) bouncing off their 200-day moving average.  While Chart 5 shows the Dow Transports nearing another attempt at a record high.   Airlines are leading the transports higher today.  While technology growth stocks are gaining ground, the strong rebound in financials is giving a bigger boost to value shares.  That suggests that investors are looking beyond technology shares for some bargains.