26 Apr 2021, 10:50
It was a rough week as the stock market went directionless. The third week of April was supposed to be the most bullish week traditionally but the bulls disappointed. As we wrote in the last market update, the green channel line serves as a tough resistance for the S&P 500 to break above. And true to form, the index just could not do so. The big news for last week was US President Joe Biden announcing massive capital gain tax on the wealthy which sent stocks sliding down on Thursday but they recovered back spectacularly on Friday to end the week flat.
However, we don’t think that this is the end of the story for the bulls. We suspect that there may be somemore room to go up this week. However, keep in mind there is the Sell-In-May effect. While we are still bullish, we are keeping cautious as well and not going in so gung-ho to grab up every stock.