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Market on “Hold” April 20, 2019

Posted by Tom in Thoughts.
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April 18, 2019 – Another lack luster week.  The S&P 500 (large cap index) down 0.08% and the broad NASDAQ Composite Index up 0.17%; in other words a flat week (though only 4 days long).  It just appears that this market is on “Hold” . . waiting for more earnings data . .  waiting for the reaction to the Mueller Report . . . waiting for direction.  Next week we will begin to see some major corporate earnings coming out and that will likely provide some reason to move in one direction or the other.  A few major banks reported last week and though it was mixed, it was better than expected and banks rallied.

Of note is the sentiment indicator that turned down this week, while other indicators remain positive.  Prices remain within the Short Term Channel (purple lines) and above the 7777 Support level but below the 8107 Resistance level.  That 8107 level is important because it was the last significant high price way back in September.

Looking at sectors we see short term strength in Semiconductor stocks, Technology, Banks, etc.  I note (again) that China has slipped down to mid pack levels.  Concerns about the trade negotiations?  Also of note were the Healthcare and Pharma sectors stocks that took a major beating this week.

I remain nearly fully invested but getting a little concerned about the momentum slow down and the overall value of stocks in the US.  In order to move much higher there will need to be signs of profit or growth or both.  Until then I’m watching for signs of Distribution . . . none yet, but I’m watching.

Happy Easter & Happy Passover to those who celebrate them.  Take Care and Good Trading.        ………… Tom ……….

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.

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