Stock market weakening, struggling to hold gains

Nasdaq Composite (Figure 3)

The Nasdaq Composite ($COMPX) ended the session lower by 0.41 points, or 0.01%, on Monday and it closed at 2,789.19.The top performers in the Nasdaq-100 were Baidu Inc. (BIDU) (+3.08%), Ctrip.com (CTRP) (+2.86%), and Sandisk (SNDK) (+2.40%). Netapp Inc. (NTAP) (-5.19%), NVIDIA (NVDA) (-2.58%), and First Solar (FSLR) (-2.58%) were the weakest.

One of the few economic reports to be released this week will be the Institute for Supply Management's Services Index on Tuesday. It's also expected to show continuing strength in manufacturing.

Earnings season unofficially kicks off on April 11th with Alcoa's (AA) first quarter report. In the meantime, attention will be focused on the European Central Bank, which is expected to raise its benchmark interest rate from 1% to 1.25% to combat rising inflation. The U.S. Federal Reserve could easily take this cue to begin raising rates before the end of the year as well. The next FOMC meeting will be held April 26-27th.

Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.

Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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About the Author
Toni Hansen

Toni Hansen is president and co-founder of the Bastiat Group, Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.

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