$DIA, $SPY, $QQQ, $RUTX, $VXX

FLASH: The S&P 500 gaped open after better than expected China’s Manufacturing PMI (actual 50.5; expected 49.5; prior 49.2) and Non-Manufacturing PMI (actual 54.8; expected 54.5; prior 54.3) reinforced the idea that global economic activity is rebounding.

The upbeat tone drove a rally in stocks with high-beta groups like the Dow Jones Transportation Average (+2.3%) and the PHLX Semiconductor Index (+2.5%) pacing the advance. The Dow Jones Transportation Average jumped above its 200-Day MA (10504) and approached its February high amid gains in all 20 components.

The broader industrials sector gained 2.1%, but finished behind financials (+2.4%).

The economically-sensitive group benefited from weakness in US Treasuries, which sent the 10-yr yield higher by 8 bpts to 2.50%. This helped expand the spread between the 3-month T-Bill yield and the 10-yr T-Note yield to 11 bpts from 3 bpts at the end of Friday’s session. Steepening the yield curve, no recession in sight.

Yield Check: 2-yr +5 bpts at 2.32% 3-yr +7 bpts at 2.28% 5-yr +6 bpts at 2.30% 10-yr +9 bpts at 2.50% 30-yr+3 bpts at 2.85%

Key commodities:

WTI Crude Oil +2.3% at 61.59 bbl $USO Gold -0.3% to 1293.90 oz $GLD Copper Unch at 2.93 lb $CU

Monday, the major US stock market indexes finished at: DJIA +329.74 at 26258.42, NAS Comp +99.59 at 7828.90, S&P 500+32.79 at 2867.19

Volume: Trade on the NYSE came in at 837-M/shares exchanged

• NAS Comp +18.0% YTD
• Russell 2000 +15.4% YTD
• S&P 500 +14.4% YTD
• DJIA +12.6% YTD

HeffX-LTN’s overall technical outlook for the US major stock market indexes is Bullish in here.

Stay tuned…

  April, Bullish, China, DIA, DJIA, global, market, QQQ, rally, Recession, RUTX, SPY, stocks, technical, Treasuries, VXX

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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