SHORT TERM: stocks gap up on a good sales report and M & A activity
Overnight the Asian markets were all substantially higher, Australia’s ASX and China’s SSEC made another all time new high. Europe came in 0.60% higher, as both Germany’s DAX and England’s FTSE are trading in new bull market high territory. At 8:30 March Retail sales were reported slightly higher than expected, and Auto sales were even up for the month. Stocks gapped up at the open and continued to rise until nearing 10:00. The SPX posted a new bull market high at 1464, penetrating the last short term overhead resistance at 1462. The NYA, which has been leading the market, posted an all time new high. Short term momentum is quite overbought as a result of this rally, reaching the typical maximum during an uptrend. Bonds are trading up 1/4 point and Crude is 45 cents lower. Gold made new uptrend highs, but is only $1.50 higher at the moment. The Euro is slightly higher, and did not receive much attention during the G-7 meeting over the weekend. We may see the OEW targeted 137, before this uptrend ends afterall. The market has been a big run over the past few days, might be time for some consolidation. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.