friday morning

SHORT TERM: DOW posts another intraday high
Overnight the Asian markets were up nicely, and Europe also came in higher. Core inflation was reported at an 11 year high this morning, rising to 2.5%. However, the bonds reacted by going lower. Our stock indices opened lower and pulled back some until about 10:00. Then the Chicago reported greater than expected manufaturing activity for September, and consumer sentiment rose as well. So some positive and some negative figures this morning. It’s nice to be a market technician, and not have to sort out all this economic data. Stocks rallied, somewhat, on the positive news, as the DOW posted a new intraday high. Bear Sterns also reported, that based upon preliminary statistics Google is having a solid third quarter. We’ll find out in about three weeks, as earnings season begins shortly. The short term indicators, for the stock indices, continue to remain positive. The SPX/NDX are still trading off of some positive divergences that were setup yesterday. Expecting the rally to continue. Today is end of month and the end of quarter. This might provide an impetus to drive stocks higher by the end of the day. Watching the DOW for a new all time closing high.
MEDIUM TERM: bullish … all major indices uptrending
LONG TERM: bullish.   

About tony caldaro

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