MLR - PMP 5/6/14
Markets initially opened nearly 1% lower on negative news out of Ukraine and weak manufacturing data in China but managed to claw their way back into positive territory albeit on weak volume. Price/volume action in the major indices remains bearish despite the S&P 500 just 0.7% from all-time highs, and action on behalf of leaders still remains tepid at best. The last two times the S&P 500 hit new highs, the index went sideways for a few weeks the first time, then corrected 4.4% the second time.
Both the NASDAQ Composite and Russell 2000 remain below their respective 50-day moving averages. The question is whether quantitative easing can continue to push markets higher with contained corrections as it has since January 2013 or whether this time, given the pronounced damage done to leaders, the correction will be more substantial.
Intermune (ITMN) had a pocket pivot after reporting earnings on Friday, though it closed at the low end of its range. Today, it just passed Friday's high. Sales are skyrocketing and it gapped up in February after a strong earnings report. Group rank 41.
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