BALTIMORE ( Stockpickr) -- Earnings plus Thursday's regular dump of economic data are putting the onus on the fundamentals today, as investors wait to see whether companies hit their numbers -- and whether everything from this morning's jobs data to this afternoon's Fed update hits the mark. A big earnings beat from high-profile General Motors (GM) should help buoy stocks more than most this morning.
Like I said on Monday, "sell in May and go away" isn't looking like a good plan for investors this time around.
After much anxiety, investors are also starting to realize that the correction in the S&P 500 was just that: a pullback following one of the biggest rallies since 2009. With the broad market back above 1400 this week, buyers should start getting comfortable again. The S&P's high water mark this year at 1422 is still an important resistance level -- it's the nearest overhead level where sellers became handily more eager to sell and take gains than buyers were to buy. A push above 1422 indicates to traders that the pocket of excess supply of stocks at that level has been completely absorbed by buying.