SHORT TERM: market continues to pullback on weakened economic news
Overnight the Asian markets were mixed, but Europe looks to close higher. This morning the durable goods orders and new home starts came in much lower than expected creating fears of a weaker than expected economy. Stocks initially rallied on the news with a gap up opening. But that enthusiasm quickly evaporated and stocks resumed the correctional pullback of last weeks rally. This week long correction has now retraced about 38.2% of the recent rally, a typical fibonacci retracement. Also, the continuing saga of Iran (nuclear) - Iraq (stability) has allowed the sellers to pressure the market while the buyers hesitate. The commercials, in the lastest report, continue to increase their holdings for the third week in a row, as the speculators covered some short positions: positive for the market. Quiet week thus far.
MEDIUM TERM: SPX/DOW uptrending, NAZ/NDX correcting the recent rally
LONG TERM: bullish.