The world came to the aid of the bulls yesterday. China’s PMI data were better-than-expected, but near 50 might support China easing back on its restrictive stance. The Euro-zone also reported better than expected manufacturing data. Britain’s banks are reporting this week, with HSBC leading the way with better-than-expected profits and improving loan loss data. The Euro soared, helping lift commodities. Between the better economic data and the weaker Dollar, Basic Material, Energy, and large cap multinationals were rallying. Financials got a huge lift, with the XLF finally closing above its 200-day moving average. Then we got the ISM confirming the regional Fed reports that growth may have slowed, but that a double dip recession still seems far from reality. The stronger than anticipated Construction Spending data lifted Real Estate and Homebuilders. Where we lacked leadership either up or down last week, these economically sensitive groups took the clear lead. On the flip side, the losers tell us almost as much. The most defensive sectors of the market lagged considerably, which included Food, Household Products, Beverage, and Tobacco. After last Friday’s gallant attempt to reverse the poor GDP related start, the bulls got help and managed to push the averages up above their 200-day moving averages. The S & P is challenging that June high at 1130. Friday’s jobs report still looms as a potential game changer, so tomorrow’s ADP could be the catalyst.