I bought the S&P on Friday and remain long going into the new week. I see few signs of an imminent top in the indices and have every reason to want still to be long in April, traditionally a strong month for equities. The main issue is therefore which indices to play. The US remains where the action is. The Nasdaq and S&P have particularly appealing charts right now. I show below the point-and-figure chart for the S&P 500, which is implying a move towards 1460. Buying recoveries from intraday dips remains the name of the game here.
Click here for analysis of some leading equity indices
The sideways grind in copper that has been in play since early February is most likely to be resolved by a break to the upside, in my view. The time for that to occur could come sooner rather than later. The range of recent months has been tightening, which is typically the precursor of greater volatility. Seasonality for the red metal – the blue line in the accompanying chart - improves from 6 to 23 April, so this provides an obvious period in which it could head higher.
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Dominic Picarda is a Chartered Market Technician and has coordinated the IC's trading coverage since 2006. He is a regular speaker at trading and investment events and also holds the Chartered Financial Analyst qualification.