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Editor's Note: This article was originally published in John Murphy's Market Message on Thursday, May 16th at 11:49am ET.
Stocks are having another strong day today with all eleven market sectors in the red. Cyclical stocks are helping lead it higher. Chart 1 shows the Consumer Discretionary SPDR (XLY) trading back over its 50-day average (blue line). Two of its biggest gainers are shown below. Chart 2 shows Amazon.com (AMZN) bouncing off its 50-day average. Chart 3 shows Lennar (LEN) rising to the highest level in ten months. Lennar is part of the homebuilding group which has been the strongest part of the XLY this year.
Chart 1
Chart 2
Chart 3
