How Do Things Stand in the Market as of April 7th? Here’s My Take…

Good Morning, Traders!

Though the week ended on an up note with the market indexes reclaiming their respective support areas Friday, their overall losses for the week suggest that they’re overdue for a well-deserved rest. With Treasury yields at 2024 highs and the Fed ready to delay rate cuts yet again—possibly at the upcoming week’s FOMC meeting— the market rally faces key potential headwinds. The odds of a June Fed rate have now fallen to just 53.2%. Though the FOMC meeting that concludes Wednesday is the marquee event for the week, the consumer price index and producer price indexes on Wednesday and Thursday respectively are likely to be market movers as well. Plus, the approach of earnings season on Friday, with several big banks kicking things off, will give investors plenty to mull over. Remember that analysts use the runup to earnings season to upgrade and downgrade stocks they’re following. Though the overall market has been holding up well, trading-wise, stocks have been twitchy, suggesting that some traders are still on the fence about the market’s near-term prospects. That’s why more sideways action at this time would be good as it would allow more leading stocks to form clearly actionable chart patterns, but who knows? The market’s been full of surprises so far this year.