The March Producer Price Index came in down 1.2%, and was flat excluding food and energy. It was the worst year-over-year reading since 1950. Retail sales were slightly negative, down 1.1% in March, with retail sales excluding autos down 0.9%. Lind Plus Senior Market Strategist Jeff Friedman said the stock market is overbought and looks ready to correct, but may make a another run for the highs first. “The bulls are still in command, but it feels like the bulls are running out of ammunition,” he said. Jeff said traders should watch 839 as a pivotal technical level in the June S&P futures contract. A move under 839 would likely set off more aggressive selling.
MF Global Research Analyst Nick Kalivas said equity index traders should watch Goldman Sachs today. GS will sell $5 billion in stock, and the issue was priced at $123. “If GS can stay above this level, it will be constructive for the overall market.Beyond financials, retailers will find selling, technology could find selling, and energy could find selling on analyst comments,” said Kalivas.
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