MARKET COMMENTARY: for Friday, 09-May-2008

Commentary posted 08-May-2008 at 18:30 CT

Thursday's Action:

The markets bounced back today with a modest rally, led by technology, materials, and better-than-expected retail sales reports. Major overseas markets have posted mostly lower results for Thursday. London's FTSE was up 0.16%, Frankfurt's DAX closed down 0.06%, and Paris' CAC finished down 0.39%. Japan's Nikkei was down 1.13%; Hong Kong's Hang Seng closed down 0.63%, and Sydney's All Ordinaries Index finished up 0.75%. Market breadth was positive with NYSE advancing issues over declining issues by 1.41, and up volume over down volume by 1.13; Nasdaq advancing issues over declining issues by 1.32, and down volume over up volume by 1.37. Leading sectors were Gold, +4.20% and Oil Services, +3.32%. Laggards were Retailers, -1.86% and Banks, -1.51%. Nasdaq 100 futures closed 4.50 pts higher to settle at 1965.00, while the S&P's settled -3.30 pts lower at 1392.00.

The Short Term Outlook; 1-5 Days:

Futures Market Focus:

The dollar gave up ground against the euro and the pound after the European Central Bank and the Bank of England both concluded to make no changes to their interest-rate policy.

Friday's Look-Ahead:

The 60-mn SPX chart below shows the StochRSI indicator in the BUY zone. For tomorrow, resistance for the S&P's comes in at 1404 and then 1414. Support lies at 1389 and then 1386.

Friday's Reports:

The March trade balance is the sole item on the economic calendar on Friday. Economists expect a deficit of $61.3 billion. ...

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