Stocks opened higher on Monday after the futures rallied sharply overnight, but we saw the cash indices peak within the first 30-minutes of trading and, like on Friday, we saw selling in afternoon trading and into the close. The Dow ended with a 21-point loss, which doesn't sound bad, but it had been up over 150-points in early trading.
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This 15-minute bar chart of the S&P 500 futures market shows the big rally in the wee hours of the morning on Monday which rolled into the market opening, but they peaked 10 AM ET (the chart shows CT). By about 4 PM ET all of those gains were gone. 
Alcoa kicked off earnings season yesterday with a beat on earnings but a shortfall on revenue and was down in afterhours trading. The result isn't a market mover but earnings season could be and things will heat up in the next couple of weeks.
The S&P 500 (C-Fund) closed well off the daily highs for the second trading day in a row. It seems the rally is running out of steam, but as I pointed out yesterday the S&P has actually moved sideways since mid-March so the bears have not been able to do much damage yet. This area (2040-2060) seems like an important pivot point and it may be a matter of whichever comes first, 2000 or 2080, will win the war.
The Small Caps (S-fund) just cannot break that stubborn 200-day EMA as it failed yet again on Monday and posted a negative reversal day. Can the 20-day EMA hold up again on the downside?
The Dow Transpiration Index also failed to get back above the 200-day EMA, and other than the S&P 500, that is the theme throughout the charts as the old bear market refuses to go away completely. The recent action has even created a small negative bear flag. The 50-day EMA is still doing its best to hold on.
The price of oil gapped up recovering almost all of the losses from mid-March to early April, but once again it is up against the 200-day EMA.
The EFA (EAFE Index / I-fund) basically filled that open gap we talked about on Monday, and the top of that gap could act as resistance. The only major open gap now is the one just below 56.0 and the 50-day EMA.
The AGG (Bonds / F-fund) was up slightly on Monday but temporarily dipped below the short-term rising support line. Should that support break, I would look for a move down toward the 20-day EMA or even another test of the old breakout line near 110, bit that 110 area should be solid support.
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Thanks for reading. We'll see you back here tomorrow.
Tom Crowley
Posted daily at www.tsptalk.com/comments.php
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