This week was a short week for Canada and next week is a short week for the United States due to the Victoria Day and Memorial Day holidays. Markets continue to trade in a positive fashion but volumes are lower than average. Canadian CPI numbers came in slightly lower than expected. Canada now has the lowest inflation rate since 1994, with the rate at 0.4% for April, which suggests more deflationary risk than inflationary risk. Many of the discretionary categories account for this decline. Oil is trading up this morning, along with gold and silver. The US Dollar continues to decline, and has fallen below its 200 day moving average. This has been providing a boost to other world currencies including the Canadian dollar which is currently trading at about $0.87 US. Oil and gas inventory numbers come out today at about 10:35 am. The FOMC minues will be out this afternoon at 2:00 pm.
The DAX is positive along with the futures are relatively flat indicating a positive to flat open. The market condition scans are showing a slightly positive bias and the market bias indicators are showing a slightly negative open, indicating no clear bias for today’s market direction.
| Index | Change | %Change | Level | Phase |
| TSX | +338.10 | +3.46 | 10100.95 | Recovery |
| DJIA | -29.23 | -0.34% | 8474.85 | Recovery |
| Nasdaq | +2.18 | +0.13% | 1734.54 | Recovery |
| SP 500 | -1.58 | -0.17% | 908.13 | Recovery |
| Russell 2000 | -1.53 | -0.31% | 493.26 | Recovery |
| NYSE | +6.35 | +0.11% | 5872.22 | Recovery |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias but more positive momentum than negative momentum
Energy: moderate
Primary Trend: Remains down to sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Recovery |
| Technology | Recovery |
| Utilities | Recovery |
| Energy | Recovery |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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