Market Data Day

This morning will be filled with market data as Housing Starts/Building Permits and Industrial Production/Capacity Utilization are yet to report. In addition, DE blew it's earnings and HPQ has earnings after the close. As always, we are also getting inundated with bailout/recession type of news with GM submitting their viability plan in order to secure "stimulus" aid.

Yesterday's selling didn't wast any time as usual. Like so many other days in our new world order market saturated with Fund Managers the Dow dropped sharply and quickly to within breathing distance of the next support. I expect the market to settle out in the 7,500 area or slightly lower after the current intra-day consolidation is over. However, much of that will be dependent on the economic reports that are yet to be reported this morning.

Here is a chart of the Dow:
(click on image to enlarge)

Here is a chart of the SPX:
(click on image to enlarge)

The Fundies have been trying to buy the market over and over again because they think it's very oversold. The problem is the fundamentals and the new economic paradigm don't support their thesis. As I watch them chop and gyrate and flail away looking for their bottom, I'm reminded of something about two hands and a flashlight.....

Nevertheless, if we get soft data this morning, I'm still only looking for a little more carry-through on the downswing and then a settling down short-term. Remember, we are also at risk for a news bogey, although by now you'd think the Bulls would have figured it out.....and that reminds me of something about cheeze and a bell......

1:30 pm MT: Intra-day Update: The market did settle in right below 7,500 (7,480) just as I speculated pre-market. This is turning into a Pauser Day, also as I speculated. So the range has been established, which will probably be broken tomorrow (Friday at the latest).