Morning selling led to afternoon buyers which is more the type of actions bulls want to see. After being in the red much of the morning indexes finished positive with the S&P 500 up 0.45% and the NASDAQ 0.48%. We now enter earnings season which “might” be the first negative quarter in years.
Analysts have slashed corporate profit projections, predicting a slump through September. Earnings fell 5.8% in the first quarter, they estimated, after having forecast an increase as recently as January.
The NASDAQ has now come out of this wedge pattern; the next test is to not fall right back in. If it can hold it will be a good sign. Still some work to do on the S&P 500.Continue reading