Market Commentary from April 18th

Froghorse_252p_2
This week I’m going to use an optical illusion to help make a point about the publics’ perception of what is happening in the markets.

Instead of Bulls and Bears, perhaps the market is like a frog or a horse. 

It simply depends on your perspective. 

As you look at the picture on the right, you’ll see a frog sitting on the edge of a pond. 

However, if you turn the picture (or your head), you’ll see a horse that is poking his head out of the stable.

Things are not always as they seem on first glance.

Markets At The Crossroads:  Decision Time:

As it stands, the Markets have been acting
quite well.  They continue to rally, even when there is bad news in the
marketplace.  From a technical point of view, though, we are at a
crossroads. 

I prepared the following chart to show the arguments for both the bull and the bear cases.  It is a daily chart of the S&P 500.  The market’s downtrend line, since October, is marked in blue.  The red horizontal line shows that this is the fourth time we’ve hit this area since late January.

080418_sp_crossroads_630p_2

The question is whether we go up or down from here.

Like a serial cliff-hanger, we’ll have to tune-in next week to see if
anything gets resolved.

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