S&P on 5 day win streak
The Market:
The S&P 500 has been on an impressive 5 day winning streak but much like the “V” bottom we say back in February this year, this rally is coming on lower than average volume with today being by far the lowest in the S&P 500 sector ETF “SPY”. We stated in our 4/14 write-up that we would not be surprised to see the market used short term oversold levels and the shortened holiday Op-Ex week to rally. The question now is as traders get back to the desk in both the U.S. and around the world, will the rally continue?
We are expecting a pullback in the short term and that pullback will be very telling. We are watching $1873 in the S&P 500 cash on the upside and $1840 on the down, A break through either will likely mean continuation in that direction.
A very light economic calendar this week would appear to be a non-factor unless a very unexpected data point shows.
Reporting EPS 4/22/14 Pre-Market: