Strength in U.S. equity markets last week triggered by surprising strength in economic indicators was unexpected. U.S. equity markets quickly regained short term momentum. Positive psychology related to the Dow Industrials reaching all-time highs also helped. This week, economic data is expected to be positive again and the S&P 500 Index (a more significant U.S. equity index) will have a chance of reaching its all-time high at 1,576.09. Meanwhile, short and intermediate technical indicators once again have returned to overbought levels.

Selected sectors with favourable seasonality at this time of year remain attractive purchases candidates on weakness. The trigger could be a rollover of the U.S. Dollar from a highly overbought level. If it happens, commodity stocks including metals & mining, energy, coal and steel stocks will come alive. All recorded exceptional gains on Thursday and Friday.

The Dow Jones Industrial Average gained 307.41 points (2.18%) to an all-time high last week. Intermediate trend is up. The Average remains above its 20, 50 and 200 day moving averages. Strength relative to the S&P 500 Index remains positive. Short term momentum indicators are overbought.

The TSX Composite Index added 62.49 points (0.49%) last week. Intermediate trend changed from down to neutral on a move above 12,823.50. Resistance is at 12,895.28.The Index remains above its 20, 50 and 200 day moving averages. Strength relative to the S&P 500 Index changed from neutral to negative. Short term momentum indicators are trending up.

…..a beautiful Monday Morning Display of Charts and Commentary by Don Vailoux HERE