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| Today's Comments (Short Term Outlook) |
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More of the same Stocks rallied again Wednesday as investors were getting bits and pieces of the results of the stress test The Dow gained 100+ points and the S&P 500 picked up 1.7%. No changes here. The S&P 500 bounced back to the top of the ascending trading channel. The big surprise was the volume. It was the highest in nearly 2-months. That could be a sign capitulation buying, or a blow off top. The index continues to make its way toward the 200-day moving average, which is now just 31-points away.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk There nothing really to add to the day to day story. Stress test results today, jobs report tomorrow, an overbought market, a descending MACD indicator, put/call ratios and sentiment surveys showing a lot of optimism - yada, yada, yada - the market continues to rise. We haven't talked about oil for a while. It made a new 6-month high yesterday, breaking above the recent trading range. There could be many reasons for this including an improving economic picture (which means more demand), a weakening dollar, and possibly a look toward future inflation.  Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk That's all for today. Let's see how the market reacts to the stress test results before speculating any further. Thanks for reading! We'll see you back here tomorrow. |
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Today is the 4th trading day in May:  Chart provided courtesy of www.sentimentrader.com |