"Consumer Confidence lifted and luxury sales booming, OCT 26, 2010 Midday-Report" by IRISTrader U.S. equities market looked weak at opening as the dollar got strengthened. In addition to that housing data did not give investors any reasons to cheer on Tuesday. The Standard & Poor/Case- -Shiller reported a rise of +1.7% for the average price of a single home for the month of August. A Bloomberg survey said that Wall Street economists were expecting the data to be up +2.1%. GOOD NEWS FOR THE BULLS, at 10 AM EST, the Conference Board lightened up investors' mood with a rosier report. Consumer confidence for the month of October rose to 50.2; this showed a great improvement from September data at 48.6. Economists expected a 50 reading on the average, in according to Market-Watch Research. Ken Goldstein, an economist at the Conference Board stated that consumers are still worrying about the high unemployment rate. Brent Wilsey, President of Wilsey Asset Management believed the consumer spending is a better indicator of economy recovery than consumer confidence index. Both Goldstein and Wilsey said the consumer spending data after the Christmas holidays and midterm election might be a little troublesome. These data will be watched closely by economists to determine the true health of economy. While economists continue with their usual cautious tones, consumers are on a shopping spree with luxury goods. Coach Inc. reported a better-than-expected earning report on Tuesday; COH shares up +10.41% to a new 52 weeks high at $49.33 by 11:23AM EST. Tiffany & Co shares also went to a fresh new 52 weeks high at $52.50, up %1.28. According to The Street.com, there is a report by Bain & Co., a global consulting firm, predicting a phenomenon growth of +10% for luxury sector for 2010. This is an inspiring news since there was a decline of -9% for luxury products sale in 2009. For the short term, the S&P 500 has strong supports at EMA(8)= 1176.58 and EMA(21)=1165.69. With good earning season upon us, there is a very likely chance that the market would take out the recent high at 1196.14 and hit the psychological level at 1200. We would trade long ONLY stocks that have a better-than-expected earning data. Best regards to all, and good luck in your trading. Disclosure: No positions at the time of writing.