May 8th 2014 – S&P Breakout Fails Near All Time High Close

Market View:

We have seen more resistance again today as selling came close to a double top in the market.  The last two days have seen some mighty intraday swings.  Not sure what will get us back up to new highs, but I think the disparity between the Dow & S&P versus the Nasdaq will help push the S&P over the top soon.  The 8 week sell-off in the Nasdaq and choppy trading will end soon.  As it always does.  I think strength will return to the Nasdaq in the near term pushing up the other indexes, possibly starting even tomorrow.  The S&P is starting to look like a small trend up with 2 higher lows posted on the daily chart.

Market News:

U.S. stocks declined Thursday afternoon, with the S&P 500 retreating after rising to within two points of its record close and the Nasdaq Composite extending losses into a third day, as investors sorted through a mixed bag of earnings.

Ahead of Wall Street’s open, the Labour Department report initial jobless claims fell by 26,000 to to 319,000 last week, versus a 325,000 estimate. The four-week average rose to 324,750 from 320,250 the week before, the Labor Department said.

And, separate data showed China’s exports and imports rose in April on the year, defying expectations for a dip in both figures.

The European Central Bank on Thursday held its primary interest rate at record lows and ECB President Mario Draghi suggested in his news conference that the euro was too strong and was affecting inflation.

Friday

10:00 a.m.: Wholesale Trade

10:00 a.m.: JOLTs

07:10 p.m.: Minneapois Fed President Narayana Kocherlakota

Earnings: Ralph Lauren, ArcelorMittal, Telefonica, Petrobras, Echostar, Liberty Interactive, Alcatel-Lucent

News Sources:  CNBC and CNN Money