I suppose last week was an eventful one as the S&P 500 Index reached a new intra-day high on Tuesday of 1902.17. The "century" levels, 1900 in this case, tend to be strong psychological resistance levels for the market and a close above 1900 was not realized.
|From The Blog of HORAN Capital Advisors|
Most U.S indices ended down on the week from flat to -.6%. The Nasdaq generated a small .5% gain. The economic data continues to be indicative of an economy experiencing slow economic growth. April retail sales were week with the "weather" excuse no longer valid. And consumer sentiment and industrial production both experienced unanticipated declines.
In the coming week, potentially market moving releases will be, FOMC minutes released on 5/21, jobless claims and existing home sales on 5/22 and new home sales on 5/23. Next Monday is Memorial Day in the U.S.and markets will be closed. With the holiday being a three day weekendd, many traders will head out of town early as the end of this week nears.
A number of the articles in this week's Week Ahead Magazine focus on the anticipated correction and negativity around corporate earnings. Being a bit of a contrarian, it seems many are calling for the proverbial 10% correction and I would not be surprised if one does not unfold this summer outside of some unanticipated external shock. At the beginning of this year many were calling for higher interest rates for a whole host of reasons. I think Ryan Detrick's recent commentary and his bullish bond call late last year sums up the contrarian sentiment calls pretty well. Below is a link to this week's magazine.