News:
On Thursday, markets reacted positively to the latest GDP advance estimate…
According to the Bureau of Economic Analysis, the economy grew at an annualized rate of just +1.1% in Q1 … That’s less than half the previous quarter’s growth of +2.6%.
Chart by Dept of Commerce
The report showed the chances of a recession are growing, and the market loved it.
Stocks rocketed, and the indexes closed sharply higher…
- Dow Jones +1.6%
- Nasdaq +2.4%
- S&P 500 +2.0%
- Russell 2000 +1.2%
Why did the market rally on slowing growth?
As the odds of a recession grow, the odds of The Fed ending its rate hikes grow too.
We’ll have to wait until next week to see The Fed’s next move…
Sector Round Up
It was all green all day on Thursday. Each of the 11 sectors ended the day higher.
Image from Bitcoin.com
At the top…
- Communications (XLC) +5.8%
- Consumer Discretionary (XLY) +2.6%
- Real Estate (XLRE) +2.4%
- Technology (XLK) +2.1%
At the bottom…
- Healthcare (XLV) +0.5%
- Energy (XLE) +0.4%
The gains in the communication sector were driven by blow-out earnings reported by Meta (META) on Wednesday after the closing bell.
Technicals:
After spending 2 days below the critical level of $410, the SPY, representing the S&P 500, recapture the critical level on Thursday…
SPY Daily Candles – Chart by thinkorswim
We’ll be watching today’s price action for a continuation.
The price action can get choppy when the market trades at important levels…
It’s best to look at the situation as a whole, never a single data point.
Our reading says the bulls have the wind at their back…
- The VIX fell back below the critical level of 18
- RSI levels are neutral
- The Put-to-Call Ratio is neutral
Timing:
It’s the last trading day of April.
Next week, earnings will continue to pour in, and The Fed will make an important announcement…
Your complete May outlooks will be delivered Monday morning.
Watchlist:
*TOP on watch
*TCJH support at $4.20
ELEV support at $2.50
CNMD on watch
SONM support at $1, resistance at $1.20
APLT support at $1.40/$1.60
PRG support ta $26
CRS support at $52
SA resistance at $14
TDUP support at $2.50
CBAY support at $10
Secondary watchlist—float 100+ million
TIO support at $2
XERS support at $2.20
TGTX support at $22
RIOT support at $10, resistance at $12
HIMS support at $10.50, resistance at $12
GGG support at $73