The US must lead the world economically again. Socialist-Democrats need to set aside taxes and cut East German type pretend government jobs that acco

The US must lead the world economically again. Socialist-Democrats need to set aside taxes and cut East German type pretend government jobs that accomplish nothing.

Throwing $trillions at union pension funds for government union workers who never worked an honest day in their life is the way socialists destroy not just their economy but their culture and hope for a better future. America cannot afford to throw money at rioting good for nothing thugs like Greece and other socialist states do. That is not America that is the behavior of a primitive tribe living from hand to mouth.

Then there is the socialist-communist approach when they get fed-up with the protestors and run over them with tanks. Those are socialist solutions not America's where the constitution protects the individuals and regional states from the federal government .

Plot the S&P 500 and you see it down at the resistance level of the previous low on Feb 8, 2010.

http://finance.yahoo.com/echarts?s=%5EGSPC#chart1:symbol=^gspc;range=6m;indicator=bollinger+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
Feb 8 1056 June 5 1050

The same is true for the Power Shares, QQQQ
http://finance.yahoo.com/echarts?s=QQQQ
Feb 8 42.62 June 5 44.27

The same is true for the Dow Jones Industrials, DJI
http://finance.yahoo.com/echarts?s=%5EDJI
Feb 8 9908 June 5 9816.5

Plot the NASDAQ and you see it at the resistance level of the previous low on Feb 8, 2010.
http://finance.yahoo.com/echarts?s=%5Eixic
Feb 8 2125 June 5 2173.9

The same is similar for the New York Stock Exchange, NYA. A breakdown is defined as a plunge not a slight dip.
http://finance.yahoo.com/echarts?s=%5ENYA
Feb 8 6713 June 5 6512.4


World Markets:

Economic Calendar

This week

Jun 7 3:00 PM Consumer Credit Apr:
U.S. consumers start buying big items again as store buying on credit declines. Credit-card balances declined for the 19th straight month, the Federal Reserve reported Monday. U.S. consumer credit (excluding real estate loans) rose by $1 billion to $2.44 trillion in April, a 0.5% annualized growth rate. It was only the second increase in outstanding debt in the past 14 months. Revolving credits, such as credit cards, declined by $8.5 billion to $838 billion in April, or a 12% annualized decrease. Nonrevolving credit, such as auto loans, student loans and personal loans, rose $9.4 billion in April, or a 7.1% annualized growth rate.

Jun 9 10:00 AM Wholesale Inventories Apr
Jun 9 10:30 AM Crude Inventories 06/05
Jun 9 2:00 PM FED's Beige Book Jun

Jun 10 8:30 AM Initial Claims 06/05
Jun 10 8:30 AM Continuing Claims 06/29
Jun 10 8:30 AM Trade Balance Apr
Jun 10 2:00 PM Treasury Budget May

Jun 11 8:30 AM Retail Sales May
Jun 11 8:30 AM Retail Sales ex-auto May
Jun 11 9:55 AM Mich. Sentiment Jun
Jun 11 10:00 AM Business Inventories Apr

Market Outlook June 8, 2010

We are sitting at critical 4-month and 7-month support levels. It would be unusual for the support levels to yield the very first time they are hit. It usually takes a few months of testing before a support level gives way. We expect to see advancing stock markets here and abroad most of the next four to ten weeks. But GE/MSNBC/Cramer/Pravda seems to be trying to create a panic selloff first after Cramer kept his listeners fully invested at the top. He still has them investing but now just in gold and high-dividend stocks.

The world is holding its breath waiting for America to resume economic leadership while China cleans up economic distortions and waste that accompanied their phenomenal spurt the last two years.

World Markets

Asian markets were up last night following the testing of American markets on Monday. Shanghai up 0.1%, Hong Kong up 0.6%, India down -1%, and Japan up 0.2%.

European markets are down about 1% this morning about half way through their day.

US pre-market futures are flat before the start by about +0.3%. U.S. Futures are a snapshot of the moment and do not correlate with what happens by the end of the day.