Jobless Claims Fall 16,000 For Week Of April 20, 2013 As Relative Strength Indicators Point To Stock Weakness:

jobs fair line

The Jobs Market April 2013 Is Characterized By Confusion:

Initial jobless claims decreased last week but the economy doesn’t seem too strong.  Claims for initial jobless benefits fell by 16,000 for the week ended April 20 to 339,000 the Labor Department said today.  The reading was the lowest since March 9 but market participants weren’t buying it.  The impact of sequestration and the payroll tax increases may have taken their toll and the S&P 500 hit new highs but ended the day marginally up.

The economic data has been mixed with housing numbers largely based on data from investors and a relatively high unemployment rate.  The growth in the housing market could stall and while investors are needed to put a floor on housing prices, jobs are needed to sustain them.

We are less constructive on equities short term.  We reminded our readers yesterday “… on dips and remain short term bullish which paid off in the short-run (3-5 days). We are less bullish and are leaning neutral now but intermediate term we are constructive due to the rebound after yesterday’s Associated Press Twitter flash crash.”  

Our outlook is slightly less bullish due to the sharp decrease in the IWM  and SPY today towards the end of the session.

U.S. Stock Market Major Index Statistics for April 25, 2013:

DJIA 14,700.80 24.50 0.17%
NASDAQ 3,289.99 20.33 0.62%
S&P 500 1,585.16 6.37 0.40%

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