SPY Chart 4/17

Bears took it in the teeth today.

World Recap
- Spain sold more debt than it anticipated Tuesday, with yields on 10-year Spanish government notes declining below 6% after the auction

- TheIMF  on Tuesday offered a more optimistic take on the global economy, saying the U.S. economy should expand 2.1% this year. Europe will likely contract 0.3% and the world economy should expand 3.5%. The trio of estimates were a bit improved from the IMF’s January outlook.

So for today at least the overseas market specifically Spain is showing some easing of their credit issues for the short term which will continue to calm frazzled US equities markets.

US Markets
Most of the news today was earnings related and some economic news was somewhat ignored
March housing starts unexpectedly fell 5.8%, but building permits increased. US industrial production remained unchanged for the second straight month in March. Manufacturing activity decreased by 0.2%.  So today was a big plus for the market moving upward and onward despite some less than great news on the home front


The Chart
Things on the chart are starting to look better.  Still a little undecided but better.  The biggest thing was that we are seeing support hold at the $137 really well and we were able to close higher than $138 today showing a small up tick in the bottoming process.  The MACD histogram is also showing that the down-tick is weakening.



  
Outlook
The key going forward this week is for European jitters to stay out of the news and for earnings continue to be solid all the technicals are now showing a bottoming process which means that if SPY can continue to hold $137 and continue to close over $138 we can look for the trend to resume with an upward target of between $140 and $142.


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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives.