The S&P 500 gained 1.6% last week and the year 2016 which started with an 11% crash is now in 1.6% positive territory. The market moved up last week although some macro data came out lower than expected, raising the hopes that this will help the FED to delay the next rate hikes.
However, the main reason for the market to move up were the "not so bad" quarterly earning reports which were published last week and showed a mild 2.2% drop of in company earnings, compared to analysts' expectations for the worst season since 2009, expecting an 8% drop. This week too, market direction will be dictated by the results of some big players like: Netflix
Let's take a look at the technical view of the market. As we can see from the S&P daily, the market is drifting higher. We are getting close to the point where we are going to have the major resistance area of end of 2015 and of course May 2015, which is the recent high. We are drifting higher but we are getting to the point of a decision.
Let's take a look at the last week picks. My first pick last week was Kansas City Southern
Let's take a look at his week picks. My first week for this week is Electronic Arts