At least that's what the University of Michigan Consumer Sentiment is telling us. The index rose to 92.6 in early May from 88.4 in April. Economists had been expecting the confidence level of consumers to drop slightly. Bond yields have exploded on the news, with the yield on the 5-Year note up 3.16%, the 10- Year yield up 2.31%, and the 30-year yield up 1.20%. The number hasn't done much to help equities, with the Dow down 103, and the Nasdaq down 9. Traders must be torn between the numbers suggesting the economy is on track, and the possibility that the Fed might not cut rates by 50 basis point at its next meeting, or cut rates in the future.
Nasdaq-100 60-Minute Chart
The triple Qs are down slightly, and continue to be stuck in a trading range between $43.40 and $49.43. The short-term action inside that channel shows that $45.22 could be a support level to monitor today. A break of that level could send us back down to the lower boundary of the channel. We currently have 47 stocks in the Nasdaq-100 trading lower, with CMVT, FAST, VRTS, ERTS, and LVLT down over one point. 41 stocks are higher, with none of them being up over $1. 12 stocks are unchanged. Internet stocks look to be the weakest technology sector, down 4.21%. Retailers and utilities are the only groups in positive territory, but just barely.