Maybe the Mayans are right. In the same week of trading, Goldman Sachs said this is the best time in a generation for investors to buy stocks. At the same time, the BATS Exchange IPO gets flashed crashed by the BATS exchange.
What the heck is that?
What good is it to buy stocks only to have them flash crash to zero in an instant?
All joking aside, stocks are at a crossroad heading into the week of April 26th. Only the NASDAQ managed to finish last week in the green column. The Dow, S&P, and NYSE all took a hit and finished up some shade of pink.
The good news is that the indexes all closed near support levels, and any lost ground was accompanied by shrinking volume. To Top Equity News, no volume usually means uncertainty and a lack of commitment on direction. In other words, Wall Street is not sure what to do.
That’s were TEN comes in; while we agree that stocks could take some more off the top, buying the dip should still favor investors. According to our view of the S&P’s chart, the lowest the index should go, barring any unexpected and upsetting news, is 1340.
On the flip side, if this week ahead is filled with solid economic data from Durable Goods Orders, Jobless Claims and Personal Income & Outlays, then the indexes have a short road to travel to new highs.
TEN’s biggest worry remains first quarter earnings. As we mentioned last week, analysts feel earnings could be flat relative to 2011’s first quarter. If that’s the case, it is hard to see stocks moving up on flat-tires.
If we were forced to take a position for the week ahead, TEN would expect to see stocks that have outperformed continue on up, and those that have lagged to continue lagging. It’s the end of the first quarter, and money managers galore will be tidying their holding by selling the dogs to buy diamonds.
Stock Market Trends: It’s the End of the World as We Know it, and I Feel Fine is an article from: 
