We continue in this "V shaped" move off last week's touch of the 200 day moving average on the NASDAQ. The S&P 500 gained 0.41% and the NASDAQ 0.97%. The indexes are nearing overbought near term so a day or two of rest would serve the bulls well to try to attempt a new leg higher. In economic news existing home sales hit 4.59 million in March, versus a 4.55 million estimate.
Since the mid day reversal last Tuesday we've seen a V shaped rally, so we'll see if "that" was the correction pretty soon here. The NASDAQ still has a ways to go before hitting key resistance while the S&P 500 should be back to the top of the range it has been in all year soon if this continues. As stated last Wednesday those intraday reversals where you probe down, make a new low and then reverse sharply and close at or near the highs sometimes mark a bottom, and usually at least provide a short term bounce. Of course we have no idea which one it is yet! Today was a quiet session with a mid morning drop but a rally the rest of the session - the S&P 500 gained 0.38% and the NASDAQ 0.64%. We have another heavy slate of earnings Tuesday-Thursday this week so buckle up.
With markets closed for Good Friday, stocks finished off a very good week, retracting a decent portion of the losses we had seen in the previous few weeks. The coast is still not clear thought for major risk taking - but we are seeing some rebounds in the hardest hit areas, specifically internet, biotech, and momentum stocks. Today the S&P 500 gained 0.14% and NASDAQ 0.23% after both opened in the red with Google and IBM pressured. Stocks came off their lows after a gauge of manufacturing activity in the Philadelphia region rose to 16.6 in April from 9.0 in March - this was ahead of expectations. For the week, the S&P 500 added 2.7% and the NASDAQ advanced 2.4%.
We missed an interesting session yesterday with our quarterly survey so it is worth mentioning it today. The market was very volatile yesterday but sometimes that can cause a shakeout of sorts when it comes at the end of a correction. Also the NASDAQ hit a key moving average - the 200 day - which if nothing else is usually a place for momentum to reverse in the near term. Was that the end of the correction? Of course we never know until after the fact but creating a new low and then surging off it can sometimes signal a key reversal. As for today, the Federal Reserve continues to try to massage the market's nerves and Janet Yellen helped lift spirits, pushing the S&P500 up 1.05% and the NASDAQ 1.29%.