The stock market is at a critical resistance level. If it breaks out it could rise 20% this time.

Market Outlook

The real turnaround is just beginning as we showed yesterday. This week we have important reports that we believe will support the conclusion that the turn around actually began this past month. If the resistance is not broken, the market could go down even on good news. Here is the news on tap this week.

Wednesday, Oct. 14:
---Retail Sales am
--- FOMC minutes pm

Thursday, Oct. 15am:
--- Unemployment Claims
---Consumer Price Index
---NY State Mfg. Index
---Philly Fed Index

Friday, Oct. 16 am:
---Industrial Production
Capacity Utilization - Sep
---Consumer Sentiment


Market forces October 13

We are at a critical juncture. Failure to break out within the next two weeks could result in a significant correction. We are optimistic. The market has to rise 40% just to get to its 2007 levels. There is quite a bit of upward potential left.

Asian markets were up last night; China up 1.4%, Hong Kong up 0.8%, India closed, Japan up 0.6%, and Seoul up 0.6%.

European markets are down in a range from 0.2% to 0.7% this morning about half way through their day.

US pre-market are slightly lower today by about 0.1% at 9:30 AM EST