Today, the DOW ended 76 points in the red. We are seeing a continuation of the dynamic see-saw battle between the DOW and the VIX. This volatility index was higher today by 2% and finished at 11.56.

The S&P 500 was down by 8 while the NASDAQ gained 10 points today. NVDA added 4 points today. The “FANG” stocks, namely FB, AMN, NFLX and GOOG continued to do well in addition to newly revived AAPL, plus BIDU. Remember…these were the stocks that had lagged on the upside while the financials were the early heroes of the post-election market. In addition, the industrials have been glowing in the hopes for an accelerating economy due to proposed tax cuts, infrastructure spending and deregulation. The potential issues of tariffs and interference with free trade had hurt the large technology stocks initially…but they are certainly making up for this initial lagging performance now.

The DOW was restrained today by declines in the energy components CVX and XOM due to lower oil prices. Recently strong DIS took a breather today and PG was lower on a brokerage house downgrade.

Bond yields were down with the 10-year at 2.38%, once again lower than where it was when the Federal Reserve raised interest rates last month. The dollar was stronger against the British Pound on some political issues, but it is lower against the Euro on the drop in rates here. Gold benefitted from the lower rates here and was up to $1,183 an ounce today. Crude oil finished lower at $51.78 because as hard as OPEC tries to cut production quotes, there is too much of the stuff around to allow for a sustained advance in price.

This year has begun on a relatively positive note, unlike last year’s worst start in history. The overall bull market is now in its 91st straight month. This compares to the average length of 59 months for the 11 bull markets since 1949.

Donald M. Selkin

These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning.  The commentary provided in this Market Letter is intended to provide our customers with timely market analysis and should not be considered a research report.  This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities.  This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm.   This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author.  These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.