May 2, 2008

The markets finished in split fashion this week after posting solid gains the day before. For the week, the markets were very strong after a slight pullback early on. Friday gave more positive feelings to the market and in the short-term ‘feelings’ are what drives Wall Street. A better than expected job report this morning should lend the market some support in the weeks ahead. There are still lots of capital on the sidelines that will likely wait for a descent pullback (likely to the respective trend line) before committing large sums of capital. Important that we can pull off of these overbought conditions without spooking investors, because we are still in very dicey waters as the credit crisis is not over and done with. If we can do this, we will undoubtedly be primed for the next leg up.

Let’s look at the NASDAQ and S&P charts…