This evening, I attended the Market Technicians Association meeting in the City. Very interesting readings of the market, I'm glad to say.
One. The U.S. Housing market has technically bottomed, and although it is in a slow uptrend, there could be solid support developing in the coming months for this sector.
Two. The Auto sector is not very strong, but nevertheless the trend is upwards with sound support at current levels.
Three, and this is the most exciting part, the Crude Oil was in an upchanncel as at 24th April. Since then, the price has fallen below the 200 day moving average, and now at $92 for WTI, and being down two consecutive weeks, I believe a turning point has started and the price is likely to head towards $80 or even lower (though of course it never goes up or down in one fell swoop, it checks resistance and support levels as it trundles downwards). With less spend on petrol and hence improved spending power, shopping for consumer staples is likely to continue to improve, with possibly Housing sector also getting support if mortgages are made available at the record low rates.
Prospective home purchasers in America can consider themselves in a very favourable position.
As for the equities, the "sell in May and go away" truism has its influence, and the pattern seems a repeat of 2011, when in June the markets became stable and moved upwards. If it repeats this time, then the current market doldrums will have just been a sneeze.