Happy Earth Day!

After the long range day on Monday, Tuesday the markets opened negative but ended positive.  Selling pressure is weak, but at the same time, we are still not getting the sustained buying from institutional investors needed to move the markets up.  The markets remain in a bottoming condition, and it appears that we may be seeing an inverse head and shoulders pattern forming on the indexes.  The Nasdaq is showing the most strength of the all the indexes and probably represents the best opportunities for shorter term trading at this time.   We are in earnings season and it is likely that these news items will drive the short term sentiment of the market.  Morgan Stanley (MS) reported a big loss and cut its dividend.  The markets remain ambiguous with even the big players uncertain as to whether all this stimulus and market manipulation will work to pull the global economies out of recession.  As long as the length of unemployment remains high, consumers will be cautious about spending and logically, this means it will take longer for recovery.  However, interest rates are virtually zero, meaning savings accounts are not earning anything.  At some point, risk aversion will abate and investors will return to the market.

The Bank of Canada cut the prime rate to a ¼% and will be making some announcements on monetary policy on Thursday.  Gold, silver and oil remain range bound along with the majority of the currencies. 

  As of this writing, futures are negative and the DAX is negative, indicating a down open.   The market condition scans are showing no directional bias, although the buying momentum numbers are slightly better there is also a relatively high number of overbought stocks, which may mean we once again have a down morning and a positive close.   The market bias indicators continue to show a neutral bias, indicating once again a choppy indecisive market that remains in a bottoming condition. 

Index	Change	%Change	Level	Phase
TSX	+121.02	+1.33%	9247.17	Recovery
DJIA	+127.83	+1.63%	7969.56	Recovery
Nasdaq	+35.64	+2.22%	1643.85	Recovery
SP 500	+17.69	+2.13%	850.08	Recovery
Russell 2000	+17.56	+3.88%	470.05	Recovery
NYSE	+119.47	+2.29%	5339.59	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	Bearish
Financials	Recovery
Industrials	Recovery
Materials	Recovery
Consumer Discretionary	Recovery

Source: Telechart