Bonds Continue to Show the Way | A Bounce Brewing?
Let's see if the market can find its footing.
Technical Edge —
NYSE Breadth: 42.2% Upside Volume
NASDAQ Breadth: 44.3% Upside Volume
Yesterday’s action felt much worse than the headline numbers indicate. The market rallied on the CPI report, despite it coming in at its highest reading since 1981. However, there is hope that inflation has peaked and that’s why the market rallied.
However, we can’t exclude bonds as a culprit to yesterday’s afternoon dip. Yes, the buyers wore themselves out, but the poor bond auction at 1:00 did not help matters.
Game Plan — A Short-Term Bounce Brewing?
While I remain of the belief that this is a “mixed bag” market and that we need to respect a cautionary stance, that doesn’t mean short-term rallies can’t occur.
We are working with a holiday-shortened trading week and options expiration week. Historically, both the day before Good Friday and the April Opex day have been bullish. (Nasdaq up in 20 of last 21 Thursdays ahead of Good Friday).
Further,
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