May 4, 2009 (FinancialWire) (By Genevieve Hawkins) Last week, investors cheered news of Chrysler’s bankruptcy and a massive drop in GDP by buying in droves. Based on such logic, if Disney (NYSE: DIS) and Cisco (NASDAQ: CSCO) can report horrid financial results, stocks should rise yet again in the coming several days.

A torrent of bad news inexplicably propelled the Dow 1.7% last week, while the S&P 500 rose 1.5% and the Nasdaq increased 1.3%, in a rally that might be starting to make even market bulls nervous. Stocks are encountering key resistance levels, however, and may need more momentum to continue their advance.

A key bright spot for the market recently has been company earnings reports, which have so far mostly beaten watered down expectations, and this trend should continue in the coming week. Investors will also be watching for Thursday’s news regarding the results of the bank stress tests, although word has been leaked that all 19 institutions involved are solvent. Friday’s unemployment report is expected to be abysmal, but if last week is any judge, even terrible data could lead stocks up.

It seems like a good week for the rally to end, but contrarian logic is lately being highly rewarded. The markets might instead trade sideways as bulls and bears fight it out.

The Investrend Earnings Calendar features Barnes Group (NYSE: B), expected at $0.21 a year ago versus $0.61 a year ago; Calgon Carbon (NYSE: CCC), expected at $0.11 versus $0.1 a year ago; Entergy (NYSE: ETR), expected at $1.34 versus $1.56 a year ago; Sysco Corp. (NYSE: SYY), expected at $0.38 versus $0.40 a year ago.

The Investrend Economics Calendar lists Construction Spending for March (10 a.m.), Pending Home Sales for March (10 a.m.), Treasury auctions 3&6-month bills (1 p.m.).

The Investrend Events Calendar showcases AFL Shareholders Meeting; CALD, SFE, ITI, EMAN at AeA Micro Cap Financial Conference Presented by TechAmerica; Cloudforce Chicago Luncheon; CPST Offshore Technology Conference; DTE, ATO, ED, GAS at American Gas Association Financial Forum; IT, NYX at Financial Executives International Summit; IVAN at Raymond James Oil Sands of Canada Conference; MOT Shareholders Meeting; RIMM Hosts Capital Markets Day at the Wireless Enterprise Symposium Analyst Meeting; SEE Analyst and Investor Breakfast Meeting; SFE, ITI, CTGX, EMAN at AeA Micro Cap Financial Conference Presented by TechAmerica; SHLD Shareholders Meeting; ZMH Annual Shareholders Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 30 advancers versus 15 decliners and five unchanged. Advancers were led by Sequenom, Inc. (NASDAQ: SQNM) up 13.54%, Dryships Inc. (NASDAQ: DRYS) up 11.59%, E*Trade Financial Corporation (NASDAQ: ETFC) up 10.49%, Morgan Stanley (NYSE: MS) up 9.22%, Maxim Integrated Products, Inc. (NASDAQ: MXIM) up 8.04%, Powershares Db Crude (NYSE: DXO) up 7.69%, Sprint Nxtel Cp (NYSE: S) up 7.11%, Alcoa Inc (NYSE: AA) up 6.84%. Decliners followed Hartford Fin Svc (NYSE: HIG) down 7.93%, Fifth Third Bancorp (NASDAQ: FITB) down 6.10%.

Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).

Investrend Website of the Day: http://www.calnative.com/stories/n_walk.htm

Quote of the Day: “Football combines the two worst features of America life: violence and committee meetings.” George Will

Today is: Star Wars Day (”May the Fourth be with you.”)

Happy Birthday: George Will, Tammy Wynette, Mick Mars, Randy Travis, Ana Gasteyer, Lance Bass.

Today in History: Pope Alexander VI divided the New World between Spain and Portugal along the Demarcation Line in 1493. Christopher Columbus landed in Jamaica in 1494. American adventurer William Walker departed in 1855 from San Francisco with about 60 men to conquer Nicaragua. British police arrested Mahatma Gandhi in 1930 and placed him in Yeravda Central Prison. Ernest Hemingway was awarded the Pulitzer Prize for The Old Man and the Sea in 1953. The Ohio National Guard, sent to Kent State University after the ROTC building was burnt down, opened fire on students protesting the United States’ invasion of Cambodia, killing four and wounding nine. The Don’t Make A Wave Committee, a fledgling environmental organization founded in Canada in 1971, officially changed its name to Greenpeace Foundation in 1972. Margaret Thatcher became the first woman Prime Minister of the United Kingdom in 1979. Israeli Prime Minister Yitzhak Rabin and PLO leader Yasser Arafat signed a peace accord in 1994 regarding Palestinian autonomy granting self-rule in the Gaza Strip and Jericho.

[FirstAlert^TM was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert^TM do not necessarily reflect the opinions of Investrend.]

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