Hey Cramer, Look At This By Rick Pendergraft 
CNBC commentator and entertainer Jim Cramer declared an end to the bear market back in March, but I can’t see calling an end to the bear just yet. Just take a look at the chart of the S&P 500 below. The trend line that connects the highs from October and December is sitting just overhead in the 1407.50 range, as is the old support from the low in November.
 I will agree with him that we were due for a bounce back in mid-March. In fact, I wrote a bullish article in IDE back on March 17. I cited the extreme levels of bearishness exhibited by the CBOE Equity Put/Call Ratio and the 21-day moving average for the ratio. I also cited the highest bearish level on the Investor’s Intelligence in five years. INTERNAL ENDORSEMENT Stock Market Shocker: How a Bunch of 5th Graders Made Fools of the Trading Elite…! Wall Street wants you to believe that you have to entrust your money with the professionals and all their skills, resources and systems, if you want to make money in the markets. It’s what these guys do for a living! How could you possibly beat them?! Nothing could be further from the truth. In fact, I have used an embarrassingly simple secret to make $15,048 in just 30 days... and boost my overall account balance 152% in less than a year. Keep reading to learn how you
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| These were the drivers behind me writing a bullish piece back in March. However, things have reversed sharply in these sentiment indicators. The bearish percentage on Investor’s Intelligence peaked at 44 percent and is now back down to 31 percent. Back in March, the bearish percentage was higher than the bullish percentage for five weeks in a row, but not anymore. The bullish percentage is now at 41 percent, ten points above the bearish percentage. The 21-day moving average for the CBOE Equity Put/Call Ratio peaked out at 0.93 and has now fallen to 0.76. As you can see, the sentiment has reversed sharply as the S&P 500 approaches a critical resistance level. You should also note that the S&P is nearing overbought territory based on the 10-day RSI and the Slow Stochastics. I should point out that I am writing this article ahead of the April Employment report. The reason I say this is because an event like the monthly employment report could be what the market needs in order to break through this resistance. All things considered, it looks to me like the market is getting ready for another down leg. Between the dramatic shift in sentiment, the technical resistance, and the overbought levels on the RSI and Slow Stochastics, this is a lot to overcome. I, unlike Jim Cramer, will wait to declare an end to the bear market. Good luck and good trading, Rick P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com. [Ed. Note: Subscribers to Rick’s KISS Investing service recently closed out gains of approximately 150% on Continental Airlines and 175% on the Diamonds Trust. Click here to learn more about KISS Investing] A Tough Act to Follow By Christian Hill Since last week’s economic calendar was full of so many important reports, I thought I would take a minute and recap a bit before moving on to this week’s calendar. The two most anticipated items last week were the Q1 GDP report and the FOMC statement. The GDP report actually beat estimates, posting a 0.60% growth rate. While this matches the Q4 2007 rate and thus isn’t a decline in growth, it is hardly a robust figure. The FOMC statement was exactly what Wall Street expected. The target Fed Funds rate was cut one-quarter of a percent, down to 2.25%. As mentioned by my colleague Rick Pendergraft in last Thursday’s Unplugged issue, the Fed is running out of bullets, and inflation may soon become a top concern. Of the 16 reports that have posted results, nine beat estimates and seven missed. Overall, this is about what I expected given market conditions. This week’s calendar is significantly lighter, with only one report of any real significance. The Pending Home Sales figure is released Wednesday, and is expected to show a decline of 0.60% for March, much less than the nearly two percent decline posted in February. Whether or not this shows the bottom of the housing market is upon us would be wildly speculative, but any time a housing figure can improve versus the previous figure may be a small victory. The housing market has to turn around before we have any hope of getting out of this recession. Date | Time (ET) | Statistic | For | Market Expects | Prior | 5-May | 10:00 AM | ISM Services | Apr | 49.5 | 49.6 | 7-May | 8:30 AM | Productivity-Prel | Q1 | 1.20% | 1.90% | 7-May | 10:00 AM | Pending Home Sales | Mar | -0.60% | -1.9 | 7-May | 3:00 PM | Consumer Credit | Mar | $6.3B | $5.2B | 8-May | 10:00 AM | Wholesale Inventories | Mar | 0.40% | 1.10% | 9-May | 8:30 AM | Trade Balance | Mar | -$61.3B | -$62.3B |
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