This morning, a +7.4% jump in existing home sales gave investors something to cheer about!  All top 10 holdings of XHB (S&P Homebuilders ETF) made gains:

BBBY was especially strong, adding +3.48%.  Besides the homebuilders, miners were very strong, especial the coal stocks:  CNX +4.05%, BTU +3.7%, ACI +5.03%, MEE +2.38%.  Steel stocks also pushed higher with X making a new 52-week high, up +1.43% at $53.1.  NUE rose +1.61% and AKS was up +1.59%.

The Dow finished up +50.79 points; SPX added +3.97 points; Nasdaq gained +15.01 points:

XLF (financials) was slightly up, while HGX (housing) jumped +2.72%.  BTK (biotechs) was up +1.73%.  XME (metals and mining) added +1.3%.  GLD (gold) and SLV (silver) were weak once again; but, USO (oil) eked out a win.  However, OIH (oil services) closed in the red.  FXI (Chinese ADRs) continued to slip.

SPX

SPX added +3.97 points to close at 1118.02, just below the 1120 level.  Its daily MAs and MACD went up.

Nasdaq

Nasdaq gained +15.01 points to close at 2252.67.  Its daily MAs and MACD curved higher.

It appears that most sectors are participating in this new rally, which may finally help the market break higher.  Even the fertilizers bounced today after a Goldman Sachs analyst upgraded POT and MOS.  SPX finished just below the 1120 level, but, it has caught up with its daily upper BB.  Nasdaq is already riding its daily upper BB up and making new 2009 highs.  VIX sank to close below 20, which is a new 2009 low.  These are bullish signs for the market.  Energy stocks have been strong since the XOM/XTO merger announcement.  For instance, WLT continues to make new highs.  The dollar keeps climbing, but, its recent "inverse" relationship with the market seems to be changing, as stocks are also going higher.  We’ll get crude inventories and new home sales data tomorrow.  It’s see if SPX can finally break and close above 1120 this week (Remember Friday is Christmas and the market is closed; Thursday is a half day with the market closing at 1pm ET).

Good night and HappyTrading! ™