May Day

Good morning. Yesterday's "wait-and-see" approach along with choppy trading has a good chance of continuing today. While earnings will remain the focus (a lot of people are talking about PG, CC, and CTX this morning) more attention is being put toward the economic data and we have quite a lot of it this week. At 10:AM investors will take a look at both the ISM Manufacturing Index and Pending Home Sales reports.

Premarket trading is on the quiet side this morning, but there are a some active upside movers including MAMA, TFSM, TUES, SPAR, LHCG, VCLK, ACLS, MVIS, ALVR, TXRH, SGMS, SIGM, ZVUE, ARRS, BTJ, AQNT, XMSR, BMRN, PAY, HOLX, SIGM, ATHR, CERS, and RIMM. Sellers are focused on shares of ITWO, IVAC, BEAS, ROCM, JSDA, CC, LIZ, ACUS, PAAS, SONS, SPWR, WTSLA, UAUA, and CAKE.

As we all know, there's concern that as earnings season begins to wind down and we enter a new calendar month that the catalysts for the rally (namely low expectations into earnings & positive seasonality) will no longer provide the fuel needed to sustain the impressive upside momentum. At least not at same very aggressive pace. Traders will now be watching for clues on how the market responds to overbought conditions. Confidence will remain (and even grow further) if the dips remain both shallow and weak as they have since last summer. Have a good day!