Early in the week the May 1600 call buyers tipped off a potential run to test the top. The Boston tragedy was quickly forgotten and it provided another buying opportunity as the market tested the 50 day moving average. We would probably be at new highs if the bombing had not taken place.
Seasonally the next month during the 1st year of the Presidential Cycle has been remarkably strong especially on May 1st. The Fed is kicking in 85 Billion a month with FOMC set to meet on Wednesday. After 5 updays and 50+ points, we are overbought as we tested the prior high but Friday relieved some of that. Recent volatility had offered great trading and we found out this week that bulls are still alive despite the sell in May and double top talk.
On a side note, is Apple (AAPL) turning into a value stock? If it would drop to $350, it would be an interesting buy on a longer term horizon. On the other hand, Arm Holdings (ARMH) tagged $46 this week.