TradeWinds for Tuesday April 8th

Consolidation and resistance are today's key words.

The market is doing a nice job of consolidating its recent gains as it awaits the soon to be flood of earnings. In so doing its working off it over bought condition as evidenced by the down turn in our moderate and fast momentum indicators which had both got a bit hot. Our slow momentum indicators is sailing nicely in smooth waters with TradeWinds at its back.

This time out is coming just as we hit major resistance points for the major indexes. Look at a chart of the Dow or S&P 500 (I don't have time to publish one tonight). You can easily see that we have risen to the level which served as support for the last run-up to record high last summer which was tested in August and November before being broken in December. Its been tested as resistance a couple of times since and now we need to break through that to continue our next major leg up. To do so our momentum indicators need to reload and then make another assault. Barring major surprises in earnings in the next week or so, which make a good run at breaking that resistance. As I said yesterday, I don't think we would be in positive TradeWinds territory today if the big money thought that this earnings season would be a killer.

We had three more sectors sail into positive TradeWinds territory today - Utilities (XLU), Emerging Markets (EEM) and Brazil (EWZ).

Now check out our Top 25 Lists for today and our TradeWinds Black Box results.