Analysis for Short Term Option Trading!
Outside Market Influences-
We have been waiting to see how far the RSI would drop with that little move down but we did not go far. It is still healthy at 54.41. It continues to show us slight weakness in the move of the SPY.
The bands are contracting as the SPY moved down last week. It is just below the middle band and looks like it might have found base for itself. This is not as low as the last fall and we wonder if the SPY could lower itself more today.
The bearishness of the SPY can be seen here more than anywhere. Because the move is slow, we have the MA’s still high. But they are bearish and the MACD Histogram is also bearish. Looks like mild bearish signals for the SPY today.
Sony (SNE) is preparing to cut 10,000 jobs, or around 6% of its workforce, the Nikkei reports. The reductions look like they're part of the "painful" steps new CEO Kazuo Hirai has said he'll take to turn around the ailing consumer electronics giant, which is expecting its fourth consecutive annual loss, although one analyst reckons they're just a temporary fix.
China's March CPI rose 3.6% on year vs. expectations of 3.3% and 3.2% previously. The faster-than-expected increase could cause policy makers to be cautious in adding stimulus to boost growth.
Earnings season is due to kick off tomorrow when Alcoa (AA) reports its results, with analysts forecasting that average results will be flat to slightly lower, although growth is expected to pick up later this year and in 2013. Just three of the S&P's 10 major sectors - industrials, financials and technology - are expected to show expansion. Not good for the markets this quarter.
In Dallas, officials have enough funds left for jobless training to support only 43 people, while 23,500 have lost their jobs in the last ten weeks alone. The same story is playing out all over the U.S. as federal funding for training dries up.
U.S. stock futures point lower in front of the first day of trading following a weak nonfarm payrolls report. S&P -1.1%, Dow -0.9%.