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Favor TRANSPORTS, INDUSTRIALS, Overnight developments and charts of interest

Mild gains out of US Futures while Europe also gains ground and Asia mixed.   The Dollar is mildly lower and small losses in Treasuries but not much change.  Meanwhile, both WTI Crude and Gold are higher by a small amount.    Yesterday’s Breakout in TRANSPORTS joined the XLI move last Friday in suggesting that the industrials group could start to turn up-   A Broader-based rally than what’s been seen in recent weeks with Tech and Financials both making progress.

Seeing NDX and SPX , DJIA all make multi-day highs while Premkt gains in MU of nearly 7% , this could help Semis continue to gain ground in the days ahead and good for Technology-  Other gainers in KSS, EGY, ACIA, CHK, WTI, NOG, AAP, AZO, WWE, SWN, AKAM,  while on the downside-   LBY, AKER, DY, MLNT, ADOM, PSTG, TJX, JCP, TOL, IGT, DHI, QD



DJIA-  Similar to SPX,   the Move back to the highest daily close since March is a temporary bullish development for markets





DAX-  Given that German equities were closed yesterday, today gaining some ground and back to highest since late January

Counter-trend sells are premature by 7-9 trading days, so expect move to 13440-13550 area, and EWG should be favored.




GOLD-  A few days of stabilization after breaking down out of this four month consolidation.   And as can be seen trends from December 2016 intersect right near 1290.  Important for the bulls that this get back up over 1305, while UNDER 1280 can allow for a final washout back down to near 1220 before this bottoms.

Until Rates and USD start to turn down.. it’s difficult getting too bullish on gold.. but this area is important