Another Step In The Right Direction

Yesterday's price action was very bullish, even though volume was not as high as I would have liked to see. If you look at this chart, the S&P 500 Index broke above its downtrending 50-day average for the first time since 12/27. Ditto the Nasdaq. This is a big technical improvement, and a step in the right direction.

This morning's consumer confidence report was awful, but that is to be expected with all of the talk about a bear market and recession. Nonetheless, it took the market lower when it was released, in addition to a weak housing price report from the CaseShiller index, which showed home prices down -10.7% yr/yr.

Gold is up this morning, as are most commodities. Monsanto (MON) raised its earnings guidance nicely, which is boosting the ag group. Oil prices are lower, dipping below $100 for the first time in a while.

Asian markets soared overnight, led by Hong Kong, which gained +6.4%. Bond yields are slightly lower, witht the 10-year yield at 3.49%. I think yields will continue to drift higher.

The market feels pretty firm right now, and is shaking off the early weakness. Growth stocks look good, led by biotechs.