S&P On The Move

S&P crosses 200-day moving average of 928. If we can close over 928, it will be the first time we close over the 200-day moving average in 18 months. This is an important technical level.

The advance is being led by commodity and international industrial stocks, which are advancing on the strength of the Chinese rally overnight and the weakness of the dollar.

At its current level of 937, this would be the highest close since November 5, 2008.

Elsewhere: No pop for Travelers or Ciscoas they enter the Dow.

Travelers is up only 2 percent as it is replacing Citigroupin the Dow Industrials, Cisco up only 3 percent as it is replacing General Motors.

Why not a bigger pop? Because there is very little money indexed to the Dow. There is $924 billion indexed to the S&P 500, but only a fraction of that is indexed to the Dow Industrials, even though the Dow is 33 percent of the market capitalization of the S&P 500.

To give an example, right now $65 billion is invested in the Spyder (the S&P 500 ETF); the value of the DIAMONDS (the Dow ETF) is only $7.2 billion.




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