28 April 2016

SP 500 and NDX Futures Daily Charts - Wobbling On Edge

Stocks were wobbly most of the day, as they have been most of this week, and finally slid off lower into the afternoon after the European close.

The economic news is poor, and the quality of the earnings reports coming in is weak, with earnings at times but not revenue, which is quite often an indicator of creative accounting moreso than growth and strength.

As you probably have heard the GDP estimate has come in weakly. No surprise there.

We will be looking rather hard at the support levels just under the major stock indices here. If they keep this weakness, with low volumes and price propping into the close, then I think it may not take much to get stocks rolling over with some conviction to the downside.

The Fed is blowing monetary policy in a big way. And the government is not doing much better. Both seem focused on taking care of the wealthiest few and the financial system. And this is not a prescription for a sustainable recovery.

Have a pleasant evening.