We are still very much seeing a sector rotation as investors are favouring those stocks that are closely tied to the economic recovery. Traders are pushing the airline, hotel and other tourism related stocks as US economy continues to reverse coronavirus-related restrictions.
Jerome Powell, the Fed Chairman, assured markets yesterday that the Fed isn’t going to be behind the curve as they are monitoring the situation, and they will only begin to wind down their support when they see sufficient signs of recovery.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth gained momentum yesterday. 87% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth also showed strength yesterday. 88% of the shares traded above their 200-day moving average.
Dow Jones Futures Today
The Dow Jones futures are trading higher today. In terms of economic indicators, investors will be looking at Personal Income which is due later in the day. The forecast for this data is -7.3%, while the previous reading was at 10%.
The Dow Jones futures is leading the bull market, and it is the strongest index among other US stock indices. The Dow is still trading near record highs and it seems like there is still plenty of gas left in the current bull trend.
That is because the Dow price is trading well above the 50, 100 and 200-day SMA on the daily time frame and as long as it stays above these moving averages, we are likely to see more higher highs. The near term support is at 31,353, while the resistance is at 33,018.
Stock Market Rally
The S&P 500 stock index higher yesterday; the index advanced by 0.52%. The tech sector led the index higher and 9 out of 11 sectors closed higher.
The Dow index closed higher yesterday; the Dow stocks moved the index higher by 0.62%. 23 shares advanced, while 7 shares closed lower.
The NASDAQ composite, a tech-savvy index, closed lower by 0.41% yesterday.
S&P 500 Leaders and Laggards: Darden & Discovery
Darden stock contributed the biggest gain, soaring 8.19%. Discovery stock was the largest drag; it fell by 6.76%. The S&P 500 stock index is up 1.74% so far this year.