Volume contracted 23% Monday as the market rallied

Volume contraction in any market is an indication that the market direction has a small following. A 23% volume contraction of the NYSE yesterday indicates that the recent correction may have further to go.

Oil prices are sliding lower with each price cycle as shown in the trading charts. It is indicating that deflation not inflation is still the American concern. See:
http://futures.tradingcharts.com/chart/CO/79

The dollar stopped falling indicating that deflation not inflation is still the world concern. See:
http://www.tfc-charts.w2d.com/chart/E6/C9


Market forces October 6

Nothing has changed since 1929! Obama is creating the second Great Depression before our eyes. They persecute dissident Ken Lewis and American industry is starved of liquidity while TARP funds the stock market speculators and ACORN corruption continues to get democrat-socialist congressional funds at taxpayer expense.

Rush Limbaugh is under attack by the Obama Administration and is gaining status in the world as another American dissident. The administration is offensive and calls Rush a Nazi among other things. See:
http://video.google.com/videosearch?hl=en&q=rush%20limbaugh%20songs&um=1&ie=UTF-8&sa=N&tab=wv#

Apparently the Obama administration now also has children singing Maoist type songs of praise to their leader Obama and singing "hang John Brown" type songs about Rush Limbaugh.

The latest Obama administration attack is now against American military commanders. Today they are being accused by the MSNBC/Pravda of leaking troop strengths. It is so ridiculous because everyone in the world knows our troop strength in Iraq and Afghanistan because Congress holds public hearings on them all the time. It is clear that the administration is trying to smear the military now so the Islamic Taliban terrorists can have Afghanistan back and persecute and kill Christians and educated women as they did before the UN intervened.

Asian markets were generally up last night; Hong Kong up 1.9%, India up 0.5%, Japan up 0.2%, and S Korea down -0.5%. Several Asian markets were closed or did not report on time.

European markets are up in the range from 1.3% to 1.6% this morning about half way through their day. They were down close to 2% yesterday.

US pre-market futures are up slightly again in a range of about 5% to +0.8% at 7:30 AM EST after Monday's advance.