Daily Market Update – April 12, 2016 (7:30 AM)
You probably shouldn’t even try to explain yesterday.
There’s usually a reason for a gap move higher or lower, but yesterday’s higher open didn’t really have too much behind it.
So it may have been a little understandable why the move higher couldn’t be sustained.
But then came the rebound that restored much of what was lost.
That may have been hard to explain, as well.
That rebound didn’t get quite as high as the original gap move, so maybe some technicians may have soured at that point.
Maybe that explains the final leg lower to end the day seeing the market take a small loss.
This morning the futures are headed mildly higher as we await tomorrow’s big test.
That test is the beginning of financial season. Alcoa doesn’t really count anymore. Now it’s JP Morgan Chase that sets the season off to the races and expectations are really low.
I didn’t expect too much action yesterday, but it was an active day, just not for me.
It was safer just sitting and watching, while looking for any opportunity to manage existing positions.
I think today will be the same.