Archived IMT (2010.04.30)

BOTH S&P500 and DJIA FAIL TO CLOSE above their 200-Week MAs. S&P never touched its 200-weem MA of 1225, while the Dow managed only an intraweek close above the its 200-week MA before moving below it. S&P500 however, will end the month HIGHER despite a monthly DECLINE in BRAZILs BOVESPA index. This is the first time a monthly rally in S&P500 escapes a decline in Brazilian equity benchmark index since August 2008. It could be argued that Brazils selloff resulted from this weeks 75-bp rate hike, which is the first tightening since September 2008. This weeks rate hike is far from upsetting the recovering Brazil economy, but 2 more rate hikes of 50-75 bps into end of summer may raise fears as they coincide with Brazils election. Going back to the S&P500 and the Dow, both of these will face the US jobs report as well as the latest damage in US financial stocks after Goldman Sachs was downgraded to a sell by S&P.