Thursday, April 26, 2012

Market Performance

The broad market advanced today. The DJI outperformed other indexes by climbing up 0.88% while the NASDAQ 100 gained only 0.58%. The DJI is now at new three-week high. The NASDAQ 100 pushed to new two-week high today. The Russell 2000 made a new three-week high today. The S&P 500 saw its highest close in three weeks today. The NASDAQ 100 index closed up 0.58%; the S&P 500 added 0.67% while the Dow gained 0.88%. For the week, the NASDAQ 100 is currently showing a gain of 1.84%; the S&P 500 has gained 1.56% while the Dow is presently up 1.35%.

Volume for the S&P 500 was 2,676 million shares today, close to the average daily volume of the past 3 months.

Short-Term Market Outlook

5-day charts (1 bar = 5 minutes) with a 20-period SBV are showing declining SBV oscillator readings at session's end. Negative money flow on this chart would suggest the possibility of negative trading tomorrow after the market open. 30-day charts (1 bar = 30 minutes) with a 13-period SBV are showing flat SBV with readings that are at positive levels which would favor bulls. Furthermore, it is difficult to consider 5-day charts' outlook as strong signals unless we see declining SBV readings on 30-day charts as well. We would continue monitoring this chart for clearer SBV direction, as it may define next trading session's sentiment.

Longer-Term Market Outlook

60-day charts with a 20-period SBV are now showing flat SBV Oscillator readings on the S&P 500, on the DJI and on the Russell 2000 indexes and advancing readings on the NASDAQ 100 index. The following SBV values were recorded at session's end: plus 44% on the S&P 500, plus 51% on the DJI, plus 16% on the NASDAQ 100 and plus 68% on the Russell 2000. Advancing SBV readings are bullish and suggest the possibility of a up-move. We will continue to monitor this chart setting in order to determine at which point SBV oscillator readings start to decline; this might then suggest increased odds for a coming move to the downside.

1.5-year charts with a 10-period SBV are showing advancing SBV oscillator readings. Advancing SBV readings are bullish. This chart setting suggests a bullish market sentiment.

Coming Economic Reports

Financial Press

From Reuters:

Stocks rose for a third day on Thursday after upbeat housing data and stronger-than-expected results from companies, including Lockheed Martin, overshadowed some high-profile earnings misses.

U.S. stocks rose Thursday, as hopes for more stimulus from the Federal Reserve and upbeat housing data overshadowed concerns about the job market and mixed corporate earnings.