Unlike the market beavers re-jigging their estimates US stocks are taking a more cautious approach.
The S&P is pushing up at the highs of the day at 1829, up 13 points, which is a decent gain in itself. 1840 was a strong support level on the way down and is likely to be on the way back up.
S&P daily chart 14 04 2014
We may see resistance just ahead of there at 1835/37 which marked the area of Friday’s high and Thursday’s low.
There still seems to be some trepidation in the market at the moment and if we don’t see a push above 1840 in the sessions ahead then the market may be open to a further correction lower. If that happens then 1800 is the number to watch and a break there could send us back down towards 1700 pretty swiftly.
