So was that really a Joke?
8th April 2008
We have had 5 trading sessions since the strong April Fool’s day rally in the stock market. Over that time period the market has essentially gone absolutely nowhere. While we have tested resistance at the 12, 750 level on the DJIA (reaching 12,733 intraday) the reaction to that test has been nothing short of puzzling. Normally, you would expect the market to either strongly reject that level, or surge through to new short term highs. It has done neither.
The bulls and bears are having quite a tug of war. The bulls say the worst is over. The bears insist that we have only seen the tip of the iceberg. Only time will tell who is right. We continue to take a cautious approach to the equity markets.
JD