In America:Dow Industrials +0.6% Dow Transports +1.05%SP500...

In America:
Dow Industrials +0.6%
Dow Transports +1.05%
SP500 +0.81%
Russell 2000 +1.56%
Nasdaq100 +0.85%
Comment: The SP500 has now been up three days in a row. The market today was generally strong with excellent breadth in the Small Caps (Russell 2000).

The Materials Sector +0.85% and Energy Sector +0.47% were both up. That's something of a plus for Australia. The Banking Sector was up +0.93%. Semi-conductors was solid +0.5%.

Europe:
France +1.13%
Germany 1.23%
London +1.28%

EWA (Australian Shares ETF traded on the New York Stock Exchange) +0.51%, The Australian Dollar was up 0.37% to finish at 108.42 - still below the dizzy heights of the 110 region but bouncing back strongly. A strong Ozzie Dollar is needed to maintain the liquidity for a strong stock market. Gold in Oz Dollars was relatively flat -0.19% in the past 24 hours. That compares with a rise of about 0.2% in the price of Gold in U.S. Dollars.

Technical Comment on the SP500:
The SP500 finished at 1357.16. In a support zone but just above a good support zone.
The Index is above the 13-Day MA (positive) .
Above the 50-Day MA (positive).
Indicators:
Slow Stochastic 65.. At its signal line and rising. Positive.
The 13-Day MA is above the 50-Day MA. Positive
RSI now 60.7 and rising. It's just sneaking into the caution zone (60-70).
MACD Histogram marginally above Zero. Neutral. But rising.
CCI +75.4 and rising. Positive.
The SP500 is in an uprising channel. Positive
And the price of oil rose last nigh (+1.15%) - now at 103.93 for West Texas. This looks to me like a pause before a drop back below 100. Geopolitical events could easily change that outlook.

The action in America last night was positive from the bullish point of view. Major resistance of the recent high 1365 looms ahead. A break above there should see the index head up to the top of the channel.

I've been saying since the weekend before last that the Ozzie market would probably be a case of "sell the rumour, buy the fact". The fact being the budget. Today looks like a "buy" day to me.

Good luck
Red