Durable goods orders in September rose by 1.0% the Commerce Department reported. Durable goods have now risen in four of the last six months. But the news caused the dollar to strengthen which caused commodities like oil to decline which disappointed investors. New Home Sales fell slightly as the tax incentive faded and that also disappointed investors. The market plunged yesterday on higher volume.
Three months ago China broke down through its 50 day moving average just as we started to do yesterday. Since then China and most Asian markets have a slower more sustainable slope to their growth. Only Japan, Korea, and India are showing evidence that they have a head-and-shoulders sell signal forming. The USA and Europe have no head-and-shoulders formation yet. But if the last cycle low is broken in the next few days we must become concerned.
Thursday, Oct. 29 am:
Unemployment Claims
GDP (3rd Q)
Friday, Oct. 30 am:
Consumer income & spending
Chicago Purchase Manager Index
Consumer Sentiment
Market forces October 29
Profit taking continues to be advisable on advances and purchases should be made on declines as we now bottom. This bottom may be a little deeper if we are entering a slower growth phase. The market appreciation rate this year could not be sustained. The new rate possibly will allow the bull market to last a little longer.
Asian markets were down again last night; China down -2.3%, Hong Kong down -2.3%, India down -1.4%, Japan down -1.8%, and Seoul down -1.5%.
European markets are down in a range from -0.2% to -0.4% this morning about half way through their day.
US pre-market futures are up 0.3% today at 8:30 AM EST, better than they were before yesterdays 2% sell-off.
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