THE CLOSE AND PRE-MARKET

Sorry about no closing comments yesterday.

Go figure…a French preliminary election juices the market. The case is being made that if the far right candidate won, France leaves the EU…which could lead to who knows what. When the market realized there was no chance of winning on May 7, everything is great again. At least the market thought so.

So…we report the news:

Nasdaq and NDX break to new highs.

The new high list expands markedly.

The financials, maybe, possibly, could be…put in a firm low for now. Not leading but no longer breaking another level…yet.

Countries like France and Germany into new high ground. Massive debt, deficits, high unemployment, tepid GDP do not matter. Why? Negative rates and printing of money continues.

The Dow and S&P hold support and possibly “turn the corner!” Possibly!

The weak Transports back above the 50 day.

The Russell 2000 is back up into its 19 week trading range.

So…a lot happened yesterday because the pullback had been shallow.  Just keep in mind this is no longer an A-Z market. We are now in the midst of earnings and will get a much better idea by the reactions. We also have the Trump tax plan tomorrow. We do not believe there is a chance of a government shutdown but then again, we likes the Knicks this year.