STOCKS HAVE ANOTHER STRONG DAY -- BOND YIELDS ARE ALSO CLIMBING

STOCKS INDEXES GAIN MORE GROUND... Stocks are building on their earlier gains from Monday and are trading above their 50-day lines as shown on the three following charts.  Chart 1 shows that the next test of overhead resistance for the Dow Industrials could come at at 28,400 which was the high set a couple of weeks ago.  Chart 2 shows the S&P 500 heading toward overhead resistance at 3428.  Chart 3 shows potential overhead resistance for the Nasdaq 100 QQQ near 281.   Talk of a possible stimulus package in the works may be fueling today's stock buying.  That might also explain today's higher bond yields.

BOND YIELDS ARE RISING... Bond yields are climbing with stocks today.  Chart 4 shows the 30-Year Treasury yield climbing 6 basis points to 1.47%; while a closer look at Chart 5 shows the 10-Year Treasury yield climbing 4 basis points to 0.69%.  That's the biggest climb in four weeks.  That means that investors are selling Treasury bonds while buying stocks. Which could be a sign of more optimism on the economy.