Things are getting bearish, as factory activity has gone negative for first time since April of 2003: http://today.reuters.com/news/artic...=&cap=&sz=13&WTModLoc=NewsArt-C1-ArticlePage2 By Pedro Nicolaci da Costa NEW YORK (Reuters) - U.S. Mid-Atlantic factory activity retrenched for the first time in over three years in September, the latest sign of a rapidly-slowing economy. The Philadelphia Federal Reserve Bank said on Thursday its business activity index tumbled to -0.4 this month from 18.5 in August, far below forecasts of around 14.8. It was the first reading below zero since April 2003, indicating a sharp decline in regional manufacturing. "We're seeing signs in the Philadelphia survey that the economy is cooling off," said Gary Thayer, chief economist at A.G. Edwards & Sons. The entire survey was deemed very weak with new orders also slipping into negative territory. The six-month business outlook turned gloomy as well, showing its first negative reading since just before the last U.S. economic recession. "The region's manufacturing executives were significantly less optimistic about future activity, with most indicators dipping to their lowest readings in six years," the Philly Fed survey said. The regional survey is one of the first indicators of U.S. manufacturing of every month and is often used as a guidepost to the health of factories nationwide. It covers eastern Pennsylvania, southern New Jersey and Delaware. In one area of relief, prices paid by manufacturers eased as energy prices came off record highs. Crude oil futures have fallen dramatically since March, from around $78 to its current level near $61 per barrel. The employment index also improved modestly, rising to 10.7 from 8.2. Nonetheless, investors were startled by the unexpected pullback, selling the dollar in earnest and jumping into government bonds, which tend to be a safer bet in tough economic times. On Wall Street, stock prices <.DJI> also veered lower. The survey added to evidence that the U.S. economy is entering a rough patch led by a sharp slowdown in the housing sector, which is expected to take a toll on consumer spending. Many economists had been counting on business investment to pick up where consumers left off. The Philly data, however, at least suggest this hand-off has so far failed to take place.
i call for standing back, and let the market reveal what it's going to do there may be a decent ride ahead, if you dont jump the gun and get chopped up
Are you guys watching the leading economic indicators? They're deteriorating rapidly. That's not my opinion, nor is it something I "root for," but just fact. Do the bulls honestly believe anyone wants to buy wholesale into a deteriorating macroeconomic climate?
I don't want to be passive too long. I like identifying the patterns as they develop, not after the fact.
i guess if i'm making any predictions, it's that they're going to throw some curve balls to screw both sides before they tip their hand
This thread is alive and well! Yes, there is still massive resistance at 1326-1328! And the pattern that looks to be developing is a double top. I love it!
Yes, with the Philly FED's anouncement at noon. This market could fail to move higher here. There is a short time diagonal triangle in place, if SPX 1330 fails to be achieved in the next few days. Should know which way it's going to head soon.
market will go higher.... there will be a few bumps in the road... but nothing to freak over about..... more $$$$ this way comes