WEDNESDAY:
Durable goods orders are out pre-market, and after the 2.3% bomb in March during that slowdown April is more significant. Always volatile, but needs to bounce back here. After that new home sales at 10:00ET and more fodder for the bubble argument.
Those will impact the market, but the key is the move already put in up to this point. Solid upside that is posting lower and lower gains. That is always a sign a move is losing some steam. This market has continued its upside without a pause, and it can continue to do so here, but that is fighting the odds. Suffice it to say the indices have made a good move, they are slowing here, they could use a couple of sessions to test lower at least intraday, and then maybe be ready for the next move.
Overall that is what stocks are doing. NASDAQ rallied on the likes of CSCO, INTC, DELL, AAPL; the large caps pushed that index higher. The majority of NASDAQ stocks were flat or lower. Thus even though NASDAQ and SP500 crept higher, we see many stocks that are testing good moves with a tap back at near support. That is very healthy action that is setting up the next move higher. Thus while the indices look to be extending in an unsustainable manner, a lot of stocks are testing and setting up just as you would expect a healthy, leadership caliber stock would do.
Those are the stocks we will continue to focus on, just being patient here and looking for the next wave to start and move in. |
