On the Last Day of April Investors Took Some Profits

On the Last Day of April Investors Took Some Profits

$DIA $SPY $QQQ $RUTX $USO $USD $GLD $VXX

Thursday, the market opened in the Red as some profit-taking into April’s month-end happened. 

The market has been climbing that wall of worry the last few sessions improving the charts in all 3 major US stock market indexes, and thus turning all Key technical indicators Very Bullish.

The Weekly AAII Sentiment data remains significantly skewed Bearish on its historical averages which is Bullish.

The IWM Small Caps and MDY MidCaps have been emerging with relative strength during the week, as lower tiered stocks are catching up as portfolio managers come off the sidelines and seeking investments. 

This has been a big week for earnings reports with April’s month-end Thursday. Check the charts for identifying opportunities.

Crude Oil got a bit Thursday morning, behind a solid run-up in big energy. .

Safe-haven Gold is holding its April range highs as the market remains cautious.  Key support is seen along the 1650/1700 zone for now.

Bond Yields have been in a narrow range the last few weeks.  The FOMC stood pat with interest rates at this week’s meeting and highlighted its efforts to deal with the virus chaos and economic slowdown, standing by to do whatever it takes… 

The Buck has traded in a narrow range during the last few weeks.  Our Forex desk expect a strong directional breakout/breakdown to happen sooner rather than later…

The VIX has fallen below 40 signaling that stability is returning to the market.  This Bull market norm has been ranged at 18-25 until early this year, the very high marks are contrarian indicators for many traders.

A managed risk approach is prudent for retail investors in here. 

Market sentiment has been negative the last 8-10 wks, as stocks have seen an amazing rally.  Trillions of sidelined money is coming in, it is not window dressing.

Thursday, the major US stock market indexes finished at: DJIA -288.14 to 24345.72, NAS Comp -25.16 to 8889.56, S&P 500 -27.08 to 2912.43

Volume: Trade on the NYSE came in at 1.5-b/shares exchanged

  • NAS Comp -0.9% YTD
  • S&P 500 -9.9% YTD
  • DJIA -14.7% YTD
  • Russell 2000 -21.5% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias for the month ended 30 April 2020

Looking Ahead: Investors will receive the ISM Manufacturing Index for April, Construction Spending for March, and auto and truck sales for April Friday.

Have a healthy day, Keep the Faith!

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