SUMMARY:
- Streak ends but stocks start consolidation with good action.
- Durable goods rebound on transportation as March is revised higher as well.
- New home sales rise but still less than expected.
- Stocks starting the pause, still showing more bullish bias.
- GDP revision heads the billing for Thursday.
Volume ticks higher on NYSE but still low as stocks ease back.
Stocks were weak pre-market, ready to sell. Futures were down when the durable goods order came out, and they barely moved when that report came in better than expected. Upgrades, downgrades, earnings, market calls; nothing moved stocks off the pre-market mark.
The indices opened lower, and sold straight down. By mid-morning NASDAQ and SP500 both held above support (though SP500 fell below 1192) and started a slow drift higher. After lunch the sellers took another run at the market, sending the indices to session lows. NASDAQ was down near 20 points, and the pullback was beginning to get a bit too deep for one session even with volume running well below average once more.
After a quick drop to new session lows they the selling turned to covering and stocks turned on a dime and started back up. NASDAQ rallied 11 points, SP500 5.5 points, slicing into the earlier losses. They managed to hold most of the rebound into the close as volume turned higher as stocks recovered in the afternoon. They still finished lower for the session, but showed the right kind of action: low volume on the selling, holding support, rebounding on quickening trade, recouping some losses on the close.
That is a continuation of the bullish bias seen in this rally. The lower dips intraday shakes out some of the sellers while the rebounds shows buyers still nibbling at positions when they get the chance. This is what we wanted to see as the consolidation started, and thus far the action is very nice as both the indices and leading stocks set up for the next leg higher, doing so with some continued bullish characteristics. |
