Wednesday, April 22, 2015

Indexes Battle Brick Wall

The Market Trend Model (http://bitly.com/M_Trend_Model) continues to hold its positive bias as the Nasdaq (http://scharts.co/1HAtavT) battles against the area around the 5,000 level.  Likewise, the S&P 500 (http://scharts.co/1b4JwQD) is in its own epic battle with the area around the 2,100 level. So far during the week the indexes have found support at their respective 20-day moving averages as earnings season has moved into high gear.

While the market indexes have moved back and forth in a fairly tight range for the past two weeks, it is the performance of individual stocks that have been truly impressive.  A brief article by Joesph Fahmy (@jfahmy) best describes what could shape up as a so-so year for passive index investors and a stellar year for stock pickers: "The market averages aren't doing much, but individual stocks in leading sectors such as Tech, Generic Drugs, Semiconductors, and Biotech are significantly outperforming."  See the full article here http://ow.ly/LYDPT.

With the market indexes grinding toward new 52-week highs, the trend is your friend until the end when it bends.  As always, remain mindful of all possible outcomes and trade with the trend.