The overall market finished yesterday sharply higher in the strongest move of the year. Essentially ever index I track, with the exception of the gold indices, moved higher on the day. Oil was higher by $1.61 to $96.25 per barrel, and Gold was lower by $1.30 to $1,601.10 per ounce.
A Couple of Thoughts Before the Open:
In looking at the charts of the various indices I track; despite yesterday’s impressive market rally, only the Amex Natural Gas Index ‘XNG’ and the Amex Computer Index ‘XCI’ appear to have broken their downward trends. The rest of the indices need at least 1 more day of upward movement to break their downward trends.
Oil related stocks look good, which should come as no surprise as oil is approaching $100 per barrel.
Despite yesterday’s strong move upwards, there is a surprisingly small number of stocks that show any form of an upward trend on their charts. Remember, 1 day does not make a trend. I am not convinced yet we have started a new move higher in the market.