Market Update and Daily Timing

The TSX was the clear winner yesterday as the markets continued to edge up yesterday despite some carryover of the Easter holiday and lower volumes.  The positive earnings from Goldman Sachs (GS) appear to be the primary catalyst for the US markets, with financials and materials driving the Canadian market.  This morning some key economic reports that may impact the markets are the retail sales report expected at 8:30 am, along with the PPI and later in the morning the business inventories.  GS has also announced that it plans to pay back the TARP money which may be the beginning of many US banks making this same commitment.  Also, results on the stress testing are due.  President Obama will be making a speech on the state of the economy today as well.  Given this rather busy news day, markets will likely be choppy and indecisive.

Oil continues in its sideways trend in a wide channel from about $47 up to $53.  Gold and silver gapped up yesterday, which had a positive effect on the TSX, but still remain in their sideways trend.

 As of this writing, futures are slightly negative for the DOW and SP500, but slightly positive for the Nasdaq and the DAX is positive, indicating a mixed open.    The market condition scans are showing a weak bias to the upside and the market bias indicators are showing a statistical bias to a pullback, indicating choppy indecisive action for today. 

Index	Change	%Change	Level	Phase
TSX	+98.50	+1.07%	9285.62	Recovery
DJIA	-25.57	-0.32%	8057.81	Recovery
Nasdaq	+0.77	+0.05%	1653.31	Recovery
SP 500	+2.17	+0.25%	858.73	Recovery
Russell 2000	-0.15	-0.03%	468.05	Recovery
NYSE	+33.84	+0.63%	5410.28	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	Bearish
Healthcare	Bearish
Technology	Recovery
Utilities	Bearish
Energy	Bearish
Financials	Recovery
Industrials	Bearish
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart