Last week was indeed a volatile week as I have predicted early last week. The Dow lost 83 points or 0.66% on a week on week basis as the market got thrown around by volatile economic leading indicators and options expiration.
This week's heavyweight economic release would be the 1st Quarter preliminary GDP on Thursday. Analysts are still expecting a very optimistic 2.1% real GDP despite all the volatilities in the leading indicators so far. Those who had yet to "Sell in May and Go Away" have been protecting their stocks using put options (This is known as the "Protective Put)as total equities put call ratio remains high in favor of put options trading.
On the technical front, even though last Friday's drop was a little disappointing, it does nothing to change the rebound yet. Major indices are still rebounding from strong short term support levels and with strong bullish divergence supporting the rebound, odds continue to cast favor on the upside.
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