Despite choppy trading conditions, all the major indices closed out the month of April in the plus column. While these gains were very small, they were nonetheless gains for the month. The NASDAQ closed out the month at 4,941.88 which represented a gain of .69%. The S&P led the group with a gain of .85%, while the Dow lagged with just a small gain of .36% for the month of April.
There was no question about it, the last week in April was difficult with the sharp drop in equity prices. If one looked just at the short-term trends, you could easily be blinded to the longer-term positive trends that are currently in place for all the major indices.
In today's video, I'll be examining the major indices to see how much damage was done with this short-term pullback. I will also be looking at gold which closed out the month of April with small losses and looks to be on the defensive today.
Remember how everybody was negative on crude oil, saying it was going to $20-$30 a barrel? Well, guess what? That didn't happen. If you look back at some of my earlier videos, you can see that the Trade Triangle technology and the chart pattern analysis did not confirm the conclusion of lower prices for crude oil. Crude oil continues to be in a strong upward trend, trading very close to the $60 a barrel range. I still think crude oil can move higher and I'll share that target zone with you today.
A very similar chart pattern to crude oil exists in the Eurodollar which everyone was bearish on. The pattern I recognized along with the Trade Triangles indicated that there could be a rebound and that's exactly what has happened. The euro is currently trading at 1.1256 which is considerably higher than the recent 1.0600 was witnessed just 14 days ago.
It's the end of the week and it has been quite a week and the markets are rallying sharply. The question is, is this a dead cat bounce from the sharp or a genuine buying opportunity? As always, I will rely on the Trade Triangles to keep me on the right track.
I appreciate hearing from you. If you have any comments about today's post or video please feel free to leave them below this post, thank you.
Have a great weekend everyone, see you Monday.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
