Tuesday, October 05, 2010

Market commentary Oct. 5th (UPDATE)

There has been little news to comment on with respect to Economic data released this week. Yesterday, Factory Orders for August came in down -0.5%, compared to +0.5% in July. July's data was revised up from +0.1% to +0.5%, so the orders are down.

The stock market closed down yesterday, with the Dow closing down -79 points. Again, within a half hour of the close, it was down -95 points but then the Volume surged in the last 15 minutes to end the day only -79 points. Volume spiked about 30-40 million shares in the final 15 minutes. Now the Futures market today is up +70 points on the Dow. So it appears that the Bulls are recouping yesterday's loss.

The charts look the same. On all indexes they are completing the right shoulder of a Head and Shoulders pattern, so until it does, this market will stay up and still may go to the high of 11,200 on the Dow, as I predicted on Sept. 21st.

The big news of the week will be Thursday with Initial Jobless Claims and Consumer Credit and on Friday with the Unemployment report for the month of September. Also on Friday, Hourly Earnings, Wholesale Inventories for Aug. and Non Farm Payrolls.


The ISM Services data for Sept. was released and came in at 53.2, while expectations were for 51.0. The prior month data was 51.5.

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