Trading nearly halted due to an influx of apathy. Or so it seemed at times. It was really a ho-hum defensive day, more than I anticipated in a couple days ahead of Expiration (which is a nominal one, but very large interest noted).

Freepik

Well, maybe the shorts and option-writers were at work to try to restrain many stocks from moving above the 'strikes' with high open interest. And there's a paucity of news today, with a Beige Book that showed little, or earnings after the close that triggered copy in a few stocks (especially IBM and Tesla).

However even most of the post-Close action was complacent, though Tesla did manage to drop more than 10 points, though uncertain what Musk might have said, she he was active in the Conference Call that is ongoing for now.

Most all the smaller-cap stocks we keep an eye on were neutral or defensive in today's trade, and none had moves that alter their technical stance for now.

In-sum: 

Given the neutrality of this market, and the broad suspicions about a few Banks and ongoing 'commercial' real estate worries, we change no views, and will leave tonight's comments especially brief, for a fairly neutral market.

'Sell in May and go away' has been the underlying theme that probably has a suppressive impact on buy-side ideas currently. However, given the neutrality we've embraced for weeks (with a modest grinding upside bias), we're open a bit to the idea that while a 'shakeout' will be forthcoming, it might not 'stick' to become a downside trend, because so many are looking to buy into real dips.

By that I mean the mediocre performance of so many stocks possibly means that 'if' earnings continue not to be disasters, and a 'softish landing' probable (other than as related to commercial properties perhaps) .. well may we'll not get a kind of gut-wrenching decline the permabears and many technicians of course, continuous harp-upon as if it was handed down by the god of stocks.

Nothing is inscribed that the market must crater like the Armageddon crowd suggests. Nor are we ready for robust advances. Hence our neutrality for the last few weeks, with proviso for a Spring rally of sorts, which we got..of sorts.

Bottom-line: 

So far we do not have an extension of upside related to what is still a heavy preponderance of remaining short interest in Friday's Expiration.

Prospects thereafter would typically call for a set-up for a shakeout, but only if we get meaningful upside almost immediately. If not we'll reevaluate the odds.

More By This Author:

Market Briefing For Monday, Apr. 17
Market Briefing For Friday, Apr. 14
Market Briefing For Thursday, Apr. 13