Daily Investment Interpretations

April 6, 2010

2010-4-6:  The markets ended the day little changed: Dow dips, S&P 500 gains, Retail rallies on best monthly sales in 16 years. The NASDAQ Composite rose 7.28 points, (0.3%) to close at 2,436.81, the Dow slipped down 3.56 points (-0.03%) to close at 10,969.99, within 30 points of 12,000, and the S&P 500 slipped up 2.00 points (0.17%), closing at 1,189.44. Oil jumped to $86.74 a barrel, while Gold rose to $1,132. The VIX dropped 0.79 to close at 16.23.
My investment advisory service observes that the markets are extremely overbought on an intermediate-term basis, but their still positive until they turn negative. Looking at the charts, they appeared to be forming a top last week, but then they pushed through to a new round of highs. At the same time, if the S&P 500 reaches 1,200, it will have hit the upper trend line that has been topping the dips for the past year. If interest rates on 10-year Treasuries rise much above 4%, that could also adversely impact equity prices.
     David Weidner writes: Bailed-out banks feast on bankrupt customers.
     Michael Ashbaugh writes: S&P 500 lifts within view of major resistance.