As for the chart picture, today’s action was solid, especially with the late close above logical resistance at 514.50.
Of note, today marked the fifth consecutive daily gain for homebuilder shares
Energy stocks, homebuilders, retailers, semiconductors, financials and even gold and silver shares flirted with gains in the 2%-plus range. The losers were biotechs and tobacco.
For the first three days of trading in 2009, the Russell is up 3.1%, while the Dow is up 2.7% and the S&P 500 is up 3.5%.
Small-cap stocks turned in their best performance of the New Year today, with the Russell 2000 closing up 9.68, or 1.92% at 514.71
Advancers are leading decliners on the Russell 2000 by more than three to one.
Worst performers: food retailers, brewers, chemical companies, finance firms, biotechs and footwear firms.
Homebuilder, energy and retailer stocks were solid performers so far today, and surprisingly, airline stocks were doing well despite a rise to five-week highs in crude oil prices.
Small-cap stocks remained higher into midday trading.
Advancers are leading decliners on the Russell 2000 by 1,402 to 372.
Looking at the chart picture for small-caps, the market remains in an upward consolidation mode.
Pending home sales were also sour, sinking 4.0% versus the consensus for a decline of 1.0%.
Factory orders tumbled 4.6%, much worse than the projection for a decline of 2.5%.
The ISM Non-Manufacturing Survey came in at 40.6, which was better than the forecast of 37.0 and a nice bounce off record lows from the previous reading.
A firm tone in energy stocks, momentum from overseas gains and optimism about upcoming stimulus plans provided a lift.
(click a star)
Enter comment: