We have seen the continuation of the impressive rally, with move up to the old critical support levels-now resistance. As stated in the S&P piece we published Friday if this resistance zone gives way we are in for a move up to the 950 level in the S&P. (If you need another copy of Friday’s note please let us know). The advance/decline stats last week indicated that this tape may have the momentum to move through that resistance. Typically when you have a major support that get violated the market has to do a lot of work to go higher; if we blow through 780 on the way to 950 this will be a serious exception.
Not surprisingly our internal short term trading signals on many names are moving to neutrals off of sell signals. The amounts of new buys are not overwhelming yet. Now we wait and see if the rally has legs.
Empire State Mfg Survey8:30 AM ETMarch expected to print -30.8 vs. -34.65 in Feb.
Industrial Production9:15 AM ETConsensus expects -1.3% m/m fall in Feb. vs. a -1.8% reading in Jan. We should welcome production (and construction) declines until demand stabilizes as inventories need to be worked off. We’ve had two months of more stable retail sales data, which is a start.
posted by Peter Greene
10 Weekend Reads
17 hours ago
Posts
No comments:
Post a Comment