The DOW, S&P 500, NASDAQ, and Russell 2000 all have uptrend ratings. The Bulls no longer have a “strong” advantage over the Bears going into trading next week. The Bulls still have the advantage over Bears going into trading next week as not enough technical damage was done last week to take markets out of their uptrend ratings.
There was no institutional buying last week like we have seen for the previous several weeks. Are institutional traders taking a breather from their buying spree or has the talked of the Federal Reserve ending stimulus really spooked markets?
The Market Is Telling Us It’s Too Soon To End Stimulus
When the market drops at the slightest talk of stimulus from the Federal Reserve coming to an end, that’s telling you something very important. It’s the markets way of telling everyone that its too early for the Federal Reserve to stop stimulus. When we can talk about the Federal Reserve ending stimulus and the market reacts very little, that’s how you will know that it’s time for the Fed to end stimulus.
Orders for long-lasting U.S. manufactured goods rose more than expected in April, a sign that a sharp slowdown in factory output could soon come to an end. New orders for durable goods increased 3.3% last month, the U.S. Commerce Department said, and it revised prior readings for orders to show a smaller decline in March than previously estimated.
Fundamental analysis report that moved markets last week was Friday’s Durable Goods.
Durables orders for April came in better than expected. However, on average for the core, this means that manufacturing merely is less sluggish than believed last month. New factory orders for durables in April rebounded 3.3% after dropping a sharp 5.9% in March (originally down 6.9%). Analysts expected a 1.1% increase.
Fundamental analysis reports with the greatest probability of moving markets next week are:
Thu – May 30, 2013 = GDP
Fri – May 31, 2013 = Personal Income and Outlays
The stock market will be closed on Monday, May 27th 2013 for Memorial Day.