TRANSPORTS REACH NEW RECORD -- INDUSTRIAL SPDR NEARS UPSIDE BREAKOUT -- STOCKS REGAIN UPSIDE MOMENTUM

DOW TRANPORTS EXCEED 2018 HIGH... Transportation stocks are once again trying for a new record.   The weekly bars in Chart 1 show the Dow Transports trying to close decisively above their 2018 high.  The transports are being led higher today by airlines and delivery stocks.   But rails and trucking stocks also remain strong.  Strong transportation stocks are also lending some strength to the industrial sector in which they're included.

INDUSTRIAL SPDR NEARS UPSIDE BREAKOUT... Industrial stocks are one of the day's strongest sectors and may be on the verge of an upside breakout.   Chart 2 shows the Industrial Sector SPDR (XLI) testing its September high near 80.  A close above that barrier would put the XLI at the highest level since January.  Its relative strength ratio (solid line) is rising as well.  The three biggest percentage gainers in the XLI today are American Airlines (AAL), United Airlines (UAL), and Fedex (FDX).   Airlines are rallying today on renewed hopes for some financial aid.   Industrials are one of more cyclically-oriented market groups that have been doing much better of late.

S&P 500 TESTS OVERHEAD RESISTANCE... Stocks are making back all of yesterday's late losses and more.   Chart 3 shows the S&P 500 just belowchart resistance near 3428 (red line).  A close above that barrier would be a positive sign.   All eleven sectors are in the black with the biggest gains in materials, consumer cyclicals, industrials, health care, technology, and financials.   Bond yields are also climbing today which is another positive sign.