The market's widespread bounce from Monday continues. At the moment there is not one sector index in negative territory. The lead story is the drop in the U.S. dollar and news that secret meetings were held to stop trading oil in dollars. This is fueling a big rally in commodities. Gold futures have soared to new all-time highs.

Foreign markets were positive. The Chinese Shanghai index is still closed for holiday and should reopen for trading on October 9th. The Hong Kong Hang Seng rallied 1.8% for its second gain in a row. The Japanese NIKKEI is still under performing and only gained 0.18%. Mazda Motors was a standout today with a 7.6% rally on news it would raise more than $1 billion in cash by selling new stock. Mazda said it would invest the money in developing hybrid and other fuel-efficient technologies.

European markets were also in rally mode. Financials got a boost after Bank of America/Merrill Lynch upgraded European banks. The English FTSE rose 2.1% and is back above the 5,000 mark. The French CAC-40 rose 2.2%. The German DAX rallied 2.5%.

The U.S. dollar is sinking toward its 2009 lows. A British paper released a story last night that several Gulf Arab states, including Saudi Arabia, Abu Dhabi, Kuwait, and Qatar, held secret meetings with Brazil, China, France, and Russia. The purpose of these meetings were to discuss how to end trading oil in dollars and move to a basket of currencies including the Chinese yuan, the euro, and the Japanese yen.

Weakness in the dollar is fueling a strong rally in commodities. Gold is making headlines with a new all-time high. Gold futures have soared more than $25 today to $1,043.30 an ounce. This is above the March 2008 high at $1,033. Gold is on track to set its ninth yearly gain in a row, a feat not seen since 1948. The GLD gold ETF has broken out over resistance at the $100.00 mark to set a new record high.

Crude oil is also bouncing with oil futures up 2% to $71.82. The oil sector is really performing well this morning. The OIX index is up 3.2%. The OSX oil services index is up 3.5%. Glancing at other commodities I see that silver is doing well. The SLV silver ETF is up 4%. Copper prices are up 2.4%. The JJG grains ETN is up 5.2%.

Currently the S&P 500 index is up 1.6% at 1058. It might be struggling a little bit with the 1060 level. The NASDAQ composite is up 1.8% and back above the 2100 mark. The Dow Industrials are up 1.6% above 9750. The small cap Russell 2000 index is up 1.9% and back above the 600 level.

Let's take a quick look at charts for the major averages:

Chart of the S&P 500:

Chart of the NASDAQ:

Chart of the Dow Industrials:

Chart of the Russell 2000 index:

Scanning the play list for movers today I see that ACL is bouncing from its 40-dma. This may be a new bullish entry point. ATI continues to soar with another 2.8% gain. CAT is up 2.7%. CMP is up 2.8% and nearing its September highs. CNQ is up 3.5% and nearing short-term resistance near $68.00. CNX is up more than 5% near $48. Our first target to take profits on CNX is $48.50. Oil service stock DO is hitting new 2009 highs near $97.50. Our first target to take profits on DO is at $99.90. DRQ is breaking out over resistance at $50.00. SOHU is up 2.9%.