A rather quiet day. The market opened stronger and stayed in the green till the last hour of the day. We then went negative but managed to climb back into positive territory during the last 20 minutes and finally closed towards the upper end of today's range. (Dow was + 47 points; + 0.6 %)
Perhaps the big news of today was the fact that despite no news (or moderately positive news) the market swung around like a Jojo and finally still managed to close towards the upper end of its range. The markets ability to hold onto earlier gains despite turning negative at one point, would indicate that some further strength might be in the cards for tomorrow morning.
Volume and volatility was low, therefore not to much should be read into today's lackluster day. Earnings season starts today with a slew of companies slated to release 1st quarter earnings from here on out.
The onslaught of earnings would ordinarily increase volatility but will be likely be tempered by the upcoming Easter weekend.
My view has not changed...I still expect the Dow to work its way lower towards the 7500 area with a break below indicating a decline all the way down to the 7150 area.
On the other hand...an upside breakout above the 7980 area would signal that the 4 week old rally will resume and I then expect 8250 as an upside target.
Tomorrow will be the last day before the long 3 day Easter weekend. Also...most of the other G7 countries will be off work on Monday for Easter too. As such expect subdued activity tomorrow as well as on Monday. The market might still move...but it will be on low volume and with less velocity.
Until tomorrow,
Steve Benger
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