The S&P continued its rally gaining over 1.4% on broad-based gains. Low interest rates, relatively low inflation, somewhat strong earnings, healthy balance sheets, and Federal policy has kept the market bullish. Over the week, 9 out of 10 sectors advanced at least 1% while the tech sector fell 0.1%. The Telecom industry seemed smitten with the merger agreement between AT&T and T-mobile. The Nasdaq rallied over 9.3% while joining forces with the Intercontinental Exchange to offer a $11.3 billion rival bid for the NYSE Euronext. This offer is 19% more than the Deutsche Boerse’s offer.

This coming week has very little economic data. Tues April 5th at 10:00 am ET the ISM number will be announced for March. The market expects a rating 59.5% and was 59.7% prior. On Wednesday April 6th the MBA Mortgage Index will be given and was -7.5% when last announced. Crude inventories remain important due to the recent global focus on producing nations. Thursday April 7th at 8:30 am both initial claims and continuing claims will be announced. Initial claims are expected to be 388k, which is the same as the last announcement. Continuing claims are expected to be 3700k. Consumer credit will be given at 3:00 pm and is forecasted to be $2.0 billion. On Friday April 8th wholesale inventories for February will be announced at 10:00 am and are expected to be up 1.0% and was 1.1% prior.

The Federal Reserve could end its monetary policies and increase rates during the second of 2011. Let’s face it the Fed gave security to the market by buying back over $600 billion worth of treasuries. This coupled with unrest in the Middle East, the nuclear crisis in Japan, and debt stricken Ireland could rain on this week’s parade. Bernanke will be speaking today and may play hide and go seek with interest rate hike conversations. There is speculation that rates may be raised in December by 0.50% after the policy meeting. Since 1950 traders have been bullish due to the DOW being up over 2% for the month of April. 61 years of charting this does not mean that this has to happen but is an interesting fact.

For today, it seems as though McDonalds wants to hire 50,000 people on April 19th due to more restaurants staying open for 24 hours. This is about 3-4 people being hired per restaurant. 2 of Gaddafi’s sons are trying to push him out of his position. Seif and Saddi el- Gaddafi seem to be willing to deal with American and European powers. Why would this affect the market? Just like unrest spread through the country so can democracy and peace. This could be looked at in a positive light because this could spread to the other Middle Eastern countries. The market may push upward to start the week and then settle down as traders try to put heads or tails on where the market may go.


**Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.


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