S&P Recap

The S&P futures are up slightly this morning, we don't have any economic data this am before the open but we do have the FOMC minutes at 2pm. Yesterday there were contradictory headlines out of Europe in relation to restructuring Greece's debt. There was also news that the French and Belgians opposed the idea. Earnings were also a focus this morning as both Wal-Mart (positive) and Hewlett-Packard (negative) results were reported. Housing Starts fell by 10.6% in April to an annualized rate of 523K. This was below the consensus for 536K. The March numbers were revised higher to an annualized rate of 585K from 549K. Building Permits for April fell 4% to 551K. This was also below the consensus of 582K and last month’s reading of 574K. Stock futures were strong throughout the night but fell off sharply into negative territory as the open approached.
 
Tuesday's session began with a significant gap lower and almost immediately began to bounce from the 50 DMA. Although the bounce was short lived the SPX did manage to close above the 50dma.


In the SPX Index there were 205 components advancing and 268 components declining. There were 83 new highs and 47 new lows. 
 
The declining volume ratio was less than declining issues, this is bullish for stocks in the near term, we also have oversold conditions in the breadth indicators, especially the McClellan Oscillator. Also just 30% of stocks are above their 20dma and when that goes to 20% a meaningful rally usually occurs. 


Looking for a rally into next week, lets see if the Ben Bernanke says something about QE3 as we get closer to June