tuesday morning

SHORT TERM: end of month window dressing by mutual funds
Overnight the Asian markets were mixed, the ASX/BSE had some profit taking after the previous days all time highs, the NIK/SEC were higher. Europe came in at about 0.3% higher, and our stock index futures were higher going into the open.  At 8:30 it was reported that the employment cost index rose again, but the market shrugged it off and opened nicely higher. The buying lasted all of about 15 minutes as the market then turned lower. At 10:00, the Chicago PMI (purchasing managers index) was released, showing a substantial drop from 62.1% to 54.1%. Again, confirming the slowdown in the manufacturing sector. Stocks sold off on that news, and Bonds rallied. Consumer confidence was also reported as waning, and came in lower than expected. Technically, the market rally tested yesterdays highs before retreating, and now appears ready to test yesterdays lows. It continues to look as though the wave iv pullback is underway. Best to your trading!
MEDIUM TERM: bullish … most major indices uptrending
LONG TERM: bullish 

About tony caldaro

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