Tuesday, 29 April 2014

2pm update - holding the gains

Today is most certainly different than the dynamic swings of yesterday. With the break >sp'1875, there is no sign of any underlying weakness, and we have a VIX that is quietly melting lower. Equities look set to react favourably to the Wed' morning GDP reading, before minor churn ahead of the FOMC.



There is little to add.

Normally we'd see churn from late Tuesday, all the way into Wed' afternoon - on a Fed day, but..with ADP jobs and GDP tomorrow morning, Mr Market will have another opportunity to push higher.

Weekly charts are prone to give a clearer bullish signal on a break >1890.

Unlike yesterday, there is notable strength in all the momo stocks, with TWTR +4% ahead of earnings at the close.