WHERE ARE THE SELLERS? THEY ARE BUSY WITH COVERING...

The bull market is unabated, it is hilarious. As we anticipated the DJIA hit new high again closed at a record level after rising 46 points to 16,581. The big cap index gained 0.8% in April. The DJIA surpassed the highest closing level, reached on Dec 31, 2013.

DJIA performed in April:
Dow +0.8%

And on YTD 2014:
Dow +0.03%

Yesterday the index reached the 16,592 level that is the highest intraday level ever. So if I were a short runner I would be so busy and nervous how to cover my losses. It wouldn’t be surprise to me if during the 1st of May European closure DJIA would make a great rally, many times happen this pattern when Europe is closed for holidays US markets make nice gain. Let’s see today what’s going to happen.

The SP500 continues the ranging around the top. That range in the last more than one week hanging around the 1.880 area. In bigger perspective since February the index in a wider range of 1.840-1.880, but we are expecting some kind of break out within few days either on SP500, if the index could climb and close above the 1.890 key resistance level. The buying momentum seems pretty strong on both indices.

SP500 performed in April:
SP 500 +0.6%

And on YTD 2014:
S&P 500 +1.9%

The BFM Assets Team.