Archived IMT (2009.05.04)

Stocks hit fresh 4-month highs, with S&P500 and Dow hitting 900 and 8,400 as the better than exp housing numbers added to the optimism triggered by Chinas PMI figure showing the 5th straight monthly rise. While GBPUSD failed again to breach above $1.50, USDCAD broke below the Jan lows of 1.1755 and may set sight onto 1.1680 in the event of a successful close above 900 in the S&P500. EURCAD EYES 1.1560. AUDJPY and NZDJPY already off their highs despite stocks standing at their highs. Closely watch the overbought indicators in JPY crosses.