April 30, 2012- Stocks Struggle to Break Resistance

Markets are going to struggle to break previous cycle highs with economic data touting concerns and Spain officially in a recession, Investors are apprehensive. The S&P has seen a 4-day consecutive rise and now looks to be ready for a pull-back. At this volatile level there exists allot of skepticism and we recommend a cautious view to investing given the recent rises and lower cycle lows breaking support. These are all early indications of a market ready to decline. The Spanish economy slipped back into recession in the first quarter of 2012, making the government's job of meeting the deficit targets even tougher amid the public anger against the deepening austerity and record-high unemployment. Gross domestic product contracted 0.3 percent quarter-on-quarter in the first quarter, the statistical office INE said Monday. This followed a 0.3 percent fall in the fourth quarter of 2011, which was the first decline in activity since the final three months of 2009. The country is now in a technical recession, which is commonly defined as two consecutive quarters of economic contraction.