Editor's Note: This article was originally published in John Murphy's Market Message on Friday, February 15th at 12:40pm ET.
Charts 1 and 2 show the Dow Industrials and S&P 500 building on their gains after rising above their 200-day averages (red lines). Both now appear headed for a test of their early December peaks. Chart 3 shows the Nasdaq Composite Index in the process of testing its red line and its December high at 7486. A close above both barriers would be a positive sign for the Nasdaq and would strengthen the market's uptrend. All eleven sectors are in the black today. Financials, energy, healthcare, and industrials are leading the day's advance with gains of 1% or more. Small caps are also showing more leadership. That may be due to recent strength in the dollar which usually favors smaller stocks. Banks are leading today's gains in the financial sector.