A great week thus far for our markets as our move higher today totally erased the losses from last week’s plunge. The Dow rose 148 points to return to where it stood before Thursday’s tumble that briefly took the average down nearly 1,000 points. The technology-dominated Nasdaq composite index led major indexes with a 2 percent gain. The only concern we have at this point is the 50-day moving average on the SPX which is acting as resistance. The index bounced off of that level three times today before finally piercing it. Volume is light as traders wait to see confirmation that we can hold that level. The key level is the 1170-1175 level on the SPX. We are growingly bullish again and once we see a clear break above the 1175 level on the SPX, we will begin aggressively positioning ourselves for a move to the upside. If we fail to take 1175 then we expect the market to be range-bound in the 1150-1170 level for the short-term.
Weekly Economic Calendar:
Thursday
- Weekly initial jobless claims hit the Street on Thursday, followed by April’s import/export prices. Kohl’s Corp. (KSS), Urban Outfitters Inc. (URBN), Wendy’s/Arby’s Group Inc. (WEN), Blockbuster Inc. (BBI), CA Inc. (CA), Nordstrom Inc. (JWN), and NVIDIA Corp. (NVDA) are scheduled to report earnings.
Friday
- Friday closes the week with April retail sales, April’s industrial production/capacity utilization reports, the University of Michigan’s consumer sentiment index for May, and the March business inventories report. J.C. Penney Co. Inc. (JCP) rounds out a busy week of earnings reports.
New Trade Idea:
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