Monday, April 6, 2009

Looking again at equity market technicals (Dow and S&P 500) given the rally: Insights from

Readers here know that I like to recommend reviewing the equity market sentiment and technical picture discussed in Schaeffer's Monday Morning Outlook. Here's a quick cite to their article and I'll return a bit later to address their points in some more detail: Monday Morning Outlook: Four-Week Rally Has Altered the Technical Backdrop By Todd Salamone - SPX breaks through 80-day moving average; can it hold? Todd is their Senior Vice President of Research and it's worth paying attention as he weighs risks to the recent bear-market rally, despite an overall potential for positive seasonality in April. Also worth reading is their Senior Quantitative Analyst Rocky White, as Rocky takes a look at the potential impact of 6 consecutive losing quarters for the Dow, including how the venerable average has performed following similar periods of negative returns. (They also review some key economic and earnings reports slated for release this week.)

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