We follow Friday's 494-point surge with the Dow Jones Industrial Average (DJIA) gaining nearly 400 points. However, as pointed out earlier, the Dow was actually the laggard among the broad market indices as it "only" gained 4.9%. The S&P 500 (SPX) and Nasdaq Composite (COMP) each tacked on more than 6% while the Russell 2000 (RUT) surged over 7%.
Earlier we saw widespread buying and that continued into the close. The iShares Treasury Bond (TLT) remained the only area to lose ground. The rest of the pack was higher with most groups gaining more than 5%. The Broker/Dealer Index (XBD), Regional Bank HOLDRS (RKH), SPDR Homebuilders (XHB), S&P Retail Index (RLX), and PowerShares Clean Energy ETF (PBW) led the action with double-digit gains.
When I left the action after Friday's surge, I said we needed to see more signs of sustained buying this week. Today's action is definitely an encouraging start. The test now comes as the indices push into the prior lows. As the daily charts show, the Dow Jones Industrial Average appears to be making some progress, but the S&P 500 (SPX), Nasdaq Composite (COMP) and Russell 2000 (RUT) still have to contend with that hurdle. And that is where I will pick up in the morning. Have a nice evening...
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
851.8 |
51.8 points |
6.47 percent |
| Dow Jones Industrial Average (DJIA) |
8443.4 |
397 points |
4.93 percent |
| Nasdaq Composite (COMP) |
1472.0 |
87.7 points |
6.33 percent |
| Russell 2000 (RUT) |
436.8 |
30.3 points |
7.44 percent |
| CBOE Market Volatility Index (VIX) |
64.70 |
-7.97 points |
-11.0 percent |
Charts Courtesy of Thomson Financial
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