Stock Market Early Morning Insights – April 8, 2016

Stock Market Early Morning Insights – April 8, 2016

For traders who want volatility, this is their kind of market. I was away from my computer all day yesterday, but from looking at the end of day data, the indexes opened weak, traded down for most of the day, but found some absorption buying near the end of the session.  Volume was higher for the NASDAQ Composite, slightly above average, but was not excessive. Internals ran about 3 to 1 negative.

The last several trading sessions have been a struggle to gain control for both the bulls and bears, and neither side appears to be winning. After Wednesday’s strong candle and close, yesterday was clearly a disappointment for the bulls, but today there is renewed hope with the futures trading up over .5%. Oil seems to be leading the way with crude light up over 3% as I write this.

In spite of all the  gyrations in the indexes, the trends all remain up for the NASDAQ, but the SP 400 and SP 600 are now in short term downtrends with support just below. It is impossible to pick over overall direction in this market during this consolidation period. The increased volatility does make this a good market for selling option premium for those who have the skill and knowledge to do so.

Yesterday, oil seems to have contributed to the weak indexes, and this morning, strong crude prices seems to be giving the broader markets a lift. There were few pockets of strength yesterday, and as usual, money flowed into perceived “safe” investments. Precious Metals were strong; bonds were up. In spite of weakness in the Biotech ETFs, several of the Healthcare stocks held up well. It appears that retail stocks, and transportation stocks were among some of the hardest hit.

If the stock futures hold, stocks will see a reversal from yesterday’s action, only adding to the confusion about overall market direction.  The Nikki was up overnight, and the DAX is strong this morning. Have a good weekend.


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