The bulls have gotten off to a good start as they try to win back-to-back Monday’s following a strong rebound last week. We did a ton of homework and chart work over the weekend and some of the clues we talked about for another push higher and a break out of the current trading range are shaping up like planned.
The bears are hoping weak economic news and disappointing earnings will weigh in their favor but this morning’s news was mixed and wasn’t much help. Pending Home Sales came in better-than-expected as the index was up 1.5% versus expectations for a 0.7% pop. Meanwhile, Consumer Spending rose 0.2% compared to forecasts of 0.1%. Both reports trumped the weaker-than-expected Dallas Manufacturing Index which plunged to a negative 15.6 in April versus expectations of -5. This was a big deal but was ignored by the bulls.
The push higher is triggering new highs across the board as the Nasdaq is up 32 points to 3,311 while the S&P 500 is higher by 11 points to 1,593. The Dow is advancing 91 points to 14,803. These are the levels that we talked about that needed to be cleared and Tuesday’s have been bullish for 15-straight weeks.
We have a lot more to cover including 3 NEW TRADES today so let’s get on it. Subscribers, check the Members Area for the updates and use limit orders to get the best fills.