Some analysts are saying the stock markets look ripe for a retracement after strong gains this past week.

“I wouldn’t be surprised,” said David Rosenberg, chief economist at Gluskin + Sheff and Associates Inc.

“Whether we actually test the lows (of early March) or go through the lows, at this point that's a tough call. But if you’re going to ask David Rosenberg, would I be chasing the market right now? The answer is no.”

The TSX ended the week up just over six per cent after a string of better than expected earnings reports from blue chips such as Goldman Sachs Group and Intel Corp. raised hopes for an economic recovery.

However, enthusiasm was tested at the end of the week by the quarterly earnings report from bellwether General Electric Corp., which beat expectations on the earnings side, but disappointed on revenue.

“It’s the most popular game on Wall Street — you talk down your estimates, lower the high bar to a few inches off the ground so you really just have to take a stutter step to cross over it so then you get the headlines that 70 per cent of the companies have beaten the estimates,” said Rosenberg.

“They're beating numbers that were hardly heroic when all is said and done. But what I think is interesting is that the vast majority of companies are still beating their estimates through cost cutting.”

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