The strong Asian and European markets have buoyed the S&P futures all week in the overnight session. Everyday we come in greeted with a healthy gap up, only to see the US traders hammer the market lower on distribution in tech and small cap stocks. With end of quarter on Monday, the liquidation should be about complete. I noticed that the initial bottom made Thursday morning held up quite well for the high flyers, like FB, NFLX, SCTY, YELP, and IBB. Even with the afternoon weakness, the high flyers didn't go down, and outperformed.
It is the high flyers that took this market down, as the hot momentum money fled the market, dragging the S&P down with it. Now that looks played out based on the price action on Thursday, as high flyers look like they have bottomed. This should help lift the rest of the market into the beginning of Q2. With rumors of an imminent ECB QE, and nonfarm payrolls expected to be a big number, there should be a bit of front run buying ahead of those events.
I am bullish for the next 3 trading days.
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2 comments:
Looking a bit weak now. May be rolling over to carry on downtrend?
Still bullish for next week.
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