SHORT TERM: TGIF it’s been a nutty week!
Overnight the foreign exchanges were generally lower: Asia was mixed and Europe was down 0.35%. The Commerce Department released the first quarter economic figures which were outstanding: 4.8% GDP growth for Q1 and 1.9% inflation rate for the past 12 months. No new news for the FED as this it exactly what Bernanke mentioned yesterday. However, all good news is bad news this week to Wall Street and traders responded with a gap down opening. Considering they sold: the 4year high in consumer confidence (tues), the solid growth report of the beige book (wed), the 1/4% interest rate hike in China (thurs), and Microsoft’s earnings report thursday night, this came as no surprise. Traders seem to respond to news like we’re in a correction, interesting. The net result of all this selling is that we’re fairly close to the levels we closed at last friday. The market continues to churn.
Short term indicators are again at neutral as the market rallied to fill the gap down by 10AM. The EW pivots: SPX 1292.1300.1316, NDX 1684.1700.1750, and NAZ 2300.2333.2375 continue to envelope the trading range. The SPX rallied right into 1316 this morning and stopped. Lets see if we can finally breach this level (1318 high) on the last trading day of April. Best to your weekend!
INTERMEDIATE TERM: uptrend
LONG TERM: bullish