Despite ongoing negative economic news and expected poor earnings, many companies have been surprising to the upside of expectations and have helped to keep the markets on the positive end of their current range. However, the fears of a pandemic due to the Swine Flu which initially showed up in Mexico, is stoking some economic and market fear. The disease is currently rated at a level 4 and would have to get to a level 6 to be considered a pandemic. Technically, the pace of the upward momentum has been waning, along with volumes. Ideally, we would like to see a resting market that continues sideways rather than moving down. It is likely that news will continue to drive the short term action.
Gold, silver and oil are relatively flat this morning.
As of this writing, futures are negative and the DAX is negative, indicating a negative open. The market condition scans are once again showing no strong directional bias although the buy momentum numbers are greater than sell momentum numbers; the numbers are low, suggesting lack of positive follow through. The market bias indicators are showing a bearish signals, but not particularly strong, indicating once again a choppy indecisive market that remains in a bottoming condition.
| Index | Change | %Change | Level | Phase |
| TSX | +139.98 | +1.49% | 9549.48 | Recovery |
| DJIA | +119.23 | +1.50% | 8076.29 | Recovery |
| Nasdaq | +42.08 | +2.55% | 1694.29 | Recovery |
| SP 500 | +14.31 | +1.68% | 866.23 | Recovery |
| Russell 2000 | +12.12 | +2.60% | 478.74 | Recovery |
| NYSE | +96.31 | +1.79% | 5468.41 | Recovery |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: moderate
Primary Trend: Remains down to sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Bearish |
| Technology | Recovery |
| Utilities | Bearish |
| Energy | Recovery |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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