US stocks rally into the close, spirits high following strong US data

• Dow Jones Industrial Average rose 175 points, or 0.7%, at 25,239. 
• The S&P 500 index added 0.7% to reach 2,724, underpinned by a sharp rally in the technology sector, up 1.6%. 
• The technology-laden Nasdaq Composite Index added 1.2% to 7,348.

The standout index was the Nasdaq Composite Index added 1.2% to 7,348 with technology and internet stocks driving Wall Street the most with strong sector gains from the likes of Microsoft Corp. and Apple Inc. Market participants are awaiting results from Google-parent Alphabet Inc., which were slated for after the close of trading.

The encouraging data of late has to lead to a rise in bond yields that edged higher again on Monday following the strong non-farm payrolls and ISM numbers on Friday. A  cordial tone to last week’s trade dialogue between the US and China has also lift investor spirits. However, overall, markets were fairly range bound with China out for the Chinese New Year period. WTI dropped 1.8% to USD54.3/bbl and Gold fell 0.3% to USD1314.3/oz on the back of a stronger USD.

DJIA levels

The DJIA index is inching higher through the 61.8% Fibo retracement of the Oct 2018 decline and above the 100 and 200-D SMAs. RSI and MACD are leaning bullish and the index can target a break to the Sep lows and the 76.4% Fibo of the Sep decline at 25668. However, a significant correction in the index below the 100, 200 and 61.8% fibo confluence support area will target 9th Jan swing high at 24025.