Market Lab Report - Premarket Pulse 4/26/16
Major averages fell yesterday on lower volume ahead of the Federal Reserve's 2 day meeting. Futures markets put the odds at just 2% of a rate hike when the Fed concludes its two-day meeting at 2 PM ET Wednesday, and at just 20% in June. Other major news events on deck this week include AAPL's earnings report after the close today as well as those of a number of big-stock NASDAQ names like FB and AMZN later in the week, then on Thursday, the advanced estimate for Q1 GDP and the Bank of Japan policy decision.
The Bank of Japan has implied it may be unable to continue increasing QE going forward. Negative rates are having some negative consequences as expected, and the yen's recent drop against the dollar is also cause for concern.
With the sharp slowdown in projected U.S. GDP, the advanced estimate for Q1 on Thursday may also present issues for the market. Thus there is plenty to upset the apple-cart so to speak, starting with today's APPL earnings announcement.
While these are news events, they have the ability to impact a market that has shown a tendency to be news-oriented, so investors should stay alert and ready to act based on the market's reaction and the objective, resulting technical evidence.
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