SP500 +1.05%, Dow Industrials +1%, Nasdaq100 +1.3%, Russell2000...

SP500 +1.05%, Dow Industrials +1%, Nasdaq100 +1.3%, Russell2000 +1.1%, Transports +1.67%, DAX +1.57%.

A strong day across the board. It looks like everybody believes in this rally, now. Breadth was good (Russell2000). New York Net Advances-Declines was the highest since early March. New Lows on the NYSE have also dropped off out of the danger zone. Last night they were back to a relatively benign 16 after registering 62 in the previous session.

Three days up in a row on the SP500. Indicators have all kicked up but nowhere near danger levels. So we may see more upside. Three or four days up in a row is about the norm before some sort of consolidation. The Index is now in a congestion zone, so we might see it struggle here. Tomorrow is OpEx Day – usually a narrow range, high volume event, but lately it’s been bullish. So we’ll probably get another day up tomorrow, but without today’s strength.

Commodities:

The CRB Index was up a little but struggled intra-day. Precious Metals posted a positive result (+0.3%) after a big down day the previous day. Industrials Metals was strong +1.24% more or less negating the previous day’s weakness. Those are the two most important commodity groups from an Australian perspective.

Issues specific to Australia:

The three stocks (BHP, WBK and EWA) were all up strongly. The Ozzie Dollar was benign. So no nasties there.

Google and IBM both reported after-hours and the market reacted negatively. Google is currently down about -3% in after-hours trading. IBM is down about -4% in after-hours trading. They’re both technology issues so unlikely to affect our biggest Sectors today – Financials and Materials.

Redbacka