“This will be one of the biggest weeks as far as earnings and any negative surprises could have a ripple effect on the indexes as each one of these stocks is a key component with heavy weightings.
Ben Bernanke has a good poker face and he will need to be strong and sturdy in his words, no matter what he says about the economy. If he cracks and fails to mention the Fed’s “backup” plan then the market could suffer as the bulls see no QE3 relief.
The charts look bearish, and following a 3-week trading range, this could be the week that we break out of it. To us, the upside appears more limited than the downside but the old market saying of “don’t fight the Fed” may come into play if Bernanke pulls a rabbit out of his hat. We could see one last retest of the year highs but resistance is going to be hard to overcome and the companies reporting earnings are going to have to come in with some superb numbers.” (4/22/2012 Weekly Wrap/ Monday Morning Outlook 4/23/2012)…
The bears came charging out of the gate to start the week after a downgrade on Spanish debt but better-than-expected earnings trumped disappointing economic news the remainder of the week as the bulls pushed the market to a 3-week high.
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