We’ve seen a decent rally over these past few weeks, but I have a feeling that poor earnings, along with poor economic data will lead the markets lower. First, however, let’s recap some of the most recent fundamental occurrences within the markets:
- The economy lost 80K jobs in March, bringing unemployment to 5.1%.
- Frontier Airlines (FRNT) just filed for chapter-eleven bankruptcy protection.
- General Electric (GE) posted their first quarterly drop in profit for five years.
- Oil prices traded at a record high of $112.21 a barrel last Wednesday.
- The University of Michigan Consumer Confidence recorded a 25-year low for the month of April.
- The National Association of Realtors' index of pending home sales dropped 1.9 percent during February to 84.6, the lowest reading since 2001.
Plainly, this is all very bearish news, leading me to believe that this recent upside move across the indexes is unwarranted. The technical picture doesn’t look any better. Let’s take a look at the S&P 500:
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