April Starts With a Bang, Ends With a Whimper

DJIA - 11.81, -0.09% SP500 - 5.35, -0.38% NASDAQ Comp. - 13.30, -0.55% Russell 2000 - 2.75, -0.38% The long awaited rate cut appeared and as expected was a quarter-point drop in the fed funds rate to 2%. The Fed indicated it likely leave the rate steady for the foreseeable future. The result, more indecision. The DJIA which closed up 391 on April 1st closed down 11 points on this the last day of April. April was, however, the first positive month in 2008 for both the DJIA and the S&P. The DJIA which was up more than 100 points at mid-day closed down. The S&P dropped more than 18 points from its high. The failure of the indices to bounce from support (DJIA, Nasdaq) or break through resistance (S&P, RUT) should heighten focus on a potential for a break of support. We are maintaining a short-term neutral trend reading for today. We will be watching for a break below support on the DJIA of 12,738, the S&P 1,380, the Nasdaq 2,400 and the Russell 2000 712.50. Both the S&P and Russell already appear more bearish short-term than the DJIA and Nasdaq. You can see this if you look at the candles or price bars closely. Trade accordingly. While many stocks have released earnings, continue to be mindful of any upcoming earnings releases. POT and AGU are in bull flag patterns showing bullish haramis today. MOS also bull flag broke the high of the low day. MON which has broken below its 20, 30 and 50 DMA’s was also showing a bullish Harami. These stocks have high volatility so trade accordingly. OIH is also in a bull flag with a bullish Harami today. If your outlook is bearish check the following charts, each has a bearish engulfing or other bearish candle pattern: Earnings Date FWLT 5/7 KLAC done PETM 5/21 GRMN done SHLD 5/26 WYNN 5/1 AMC XMSR date not yet announced Today’s Action Moving Down BIDU, GRMN, SOHU, FWLT, LEH, DECK, IBM, AMZN, ESRX, NKE, GS, AAPL Moving Up FSLR, STRA, MTL, MOS, MA, PCLN, MON, X, V, CF, POT, IPI, CNX, SCHN, JASO Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral