The week ended 17th April saw all markets making modest gains. The chart below is of the FTSE Futures. The FTSE made 110 points for the shortened trading week  (Thursday 9th to Friday 17th – shortened because of the non-trading days and weekend over Easter). The S&P500 gained 14 points and the DJIA gained 68. On the FTSE  there are resistance levels at 4100, 4200 and 4300.  Should it make it above 4300 there is 4400 then 4600.  However I think it most unlikely it will breach 4200, but as usual it is wait and see.

 

President Obama and Ben Bernanke have been talking up the market with their comments. But is the worst over? Initial unemployed came in a bit better than expected, but still over 600,000, and the Michigan Consumer Sentiment also came in a bit better than expected.  Other than that nothing in the greater economic picture has changed.

I’m not getting excited yet, I’m waiting for the “other shoe to drop” by way of the next leg down.  Many commentators expect this rally to run out of steam by the end of April.  Two more US banks “bit the dust” over the last week bringing the total for this year to 25.  Banks are not out of the woods yet, though Citigroup came in with a better than expected first quarter profit. As the economy continues to weaken there are more people and companies that are defaulting on their loans. 

I definitely think those that have called the bottom are wrong, we still have a long way to go before the excesses of the housing and credit bubbles are expunged.