Ahead of the open, (01-05)

Chi PMI plunge, Financials down for the month, AAPL retrace of earnings, first red month since November… and the market as a whole is falling apart at the seams!.  That pretty well  sums up the Bear spiel today.  Unfortunately, these arguments have little merit here following a 4 day SP run, major Global markets closed today or planning to be tomorrow for May Day.  Today was just more of the digestive action continuing from Friday..” A little digestion of 3% uptick since Monday’s low is in order, but mentality should revert to buying the dips, which eventually would allow for SP 1400 to be reclaimed”.(BMO 27-04).  Recall, it’s the 1370-1400 range noted here for weeks, not 1370-1390 ‘box’ noted for breakout in many places that matters.  It will take consecutive closes over SP1400 for the level to be reclaimed by the ‘longs’.

  

Bottom line, nothing changed the playing field today, market is waiting for key April eco’ data later this week (see Into the trading week).