The first half of Wednesday’s action was slightly choppy despite futures showing a positive open. The bears’ attempt to mount any momentum and make lower lows stalled ahead of Wall Street’s lunch break, as rising support held. The bulls controlled the second half of the action while pushing higher highs, but they continue to struggle with near-term resistance.
In This Issue: Market Commentary Momentum Stocks Weekly Play List Dear Momentum Stocks Weekly Subscriber, The bulls showed their usual April strength last week as the market broke out to fresh highs for the year. Friday’s slight pullback in the major indices caught all the media attention following another tightRead more
The bulls registered back-to-back wins for the first time this month following Wednesday’s surge past resistance. The slicking-talking pros were betting against the financial stocks coming into first-quarter earnings season, but I had a more favorable view. The group has let the market down in the past, but the two-day rally has been a relief following a tight trading range.
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Last week was a rocky, choppy one for the market, which was to be expected ahead of the start of first-quarter earnings season. I mentioned last week that there could be a tight trading range with some downside weakness, but the good news is that the market’s backup support levels held.
Following some early-morning weakness on Wednesday, the bulls snapped themselves out of a two-day funk to push the market’s prior resistance levels. However, the bears’ stalled attempt at pushing support has kept a tight trading range in play that could continue into earnings season, which starts next week.
The bulls ended March with their biggest win since last October, as the market rallied throughout the month following its stay in a tight trading range. Friday’s no-joke unemployment numbers were a relief to Wall Street, and the start of April showed additional follow-through.
The bulls made a “follow-through” statement on Wednesday as they pushed towards the market’s upper resistance levels. The bears made a dent in the gains, and the major indices finished off of their intraday highs, but they are now dealing with fresh support and higher highs.
The bulls rebounded to get the overall win last Thursday following a final-hour push into positive territory. The bears still got the weekly win, which snapped a five-week slide, and they appear to have a little more momentum, as the S&P 500 closed lower. Volatility spiked to its highest level in nearly two weeks, but it still stayed below key resistance levels.
The bears got aggressive into Wednesday’s close, as the major indices tested fresh lows for the week. Near-term support was violated, but backup help is waiting in the wings. The bulls still have a shot at winning the week, however, as the trading day ahead of Good Friday has been extremely bullish in recent years.
