Trading Range to be Resolved Shortly

Investor’s first read Daily edge before the open

DJIA: 18,112
S&P 500: 2,106
Nasdaq  Comp.:5,011
Russell 2000:    1,275
Thursday, April 16, 2015   9:07 a.m.

CONCLUSION:
  An assault on the all-time highs of

(DJIA 18,288; S&P 500: 2,119; Nasdaq Comp.: 5,042 will have to wait, as sellers are there ahead of the open. The Russell 2000 hit a new high yesterday.  

   Today’s support is DJIA: 17,952  (S&P 500: 2,089; Nasdaq Comp.: 4,965).

   Bear in mind the DJIA, S&P 500, the Nasdaq Comp.  are still locked in a three month trading range  (DJIA 17,600 – 18,200; S&P 500: 2,040 – 2,115; Nasdaq Comp.: 4,845 – 5,040). If this trading range is to be resolved on the upside the bulls need to step in this week and run  the markets at least above yesterday’s close (see above).

KEY FACTORS: 

-Q1 earnings for some companies will suffer from U.S. dollar’s strength and plunge in oil prices.
-Market still keyed on the Fed and it’s first bump up in interest rates, which with a slight softening in recent economic reports looks like it may happen later rather than sooner.

Concern that the U.S. economy is beginning to slump.

COMMENTS:

A rebound in oil prices is a new uncertainty for the Street to adjust to. Expect the three month trading range to be resolved on the upside or downside within three weeks and the move beyond those borders can be dramatic. Least expected is a plunge.

Note: Source of economic data

For a weekly economic calendar and good recap of  indicators, go to mam.econoday.com.

George Brooks
Investor’s first read
A Game-On Analysis, LLC publication

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Investor’s first read, is a Game-On Analysis, LLC publication for which George Brooks is sole owner, manager and writer.  Neither Game-On Analysis, LLC, nor George  Brooks  is  registered as an investment advisor.  Ideas expressed herein are the opinions of the writer, are for informational purposes, and are not to serve as the sole basis for any investment decision. References to specific securities should not be construed  as particularized or as investment advice as recommendations that you or any investors purchase or sell these securities on their own account. Readers are expected to assume full responsibility for conducting their own research pursuant to investment decisions in keeping with their tolerance for risk.

 

 

 

 

 

 

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