With both the ISM manufacturing index and the non-farm payroll employment report due out tomorrow; the market is cautiously watching. The Dow is down 140, and Bonds are up across the entire curve. The 10 year is up 22/32s and the 30 Year Bond is up more than point. The RSI (Relative Strength Index) on the 60 minute chart is at 87, well into the red!
The week ahead is shaping up to be a barn burner. Month end, Quarter end, and the Employment Report for September are just a few of the events that could rock our world.
Strange forces at work here that are driving the market so take advantage. Technically, buyers have taken pricing through major resistance which have formed bullish readings on trend studies and oscillators. The move has also confirmed a “hammer bottom” on yesterday’s candlestick charts however, daily studies will need time to catch up for a full blown rally. Call the market, bullish, schizophrenic, Sybil (remember the movie), irrational, and interesting. It’s a lot like herding cats.
mortgage applications surged 17% according to the Mortgage Bankers Association, gold is trading above $1000.00 (inflation fear), and Consumer Credit fell by a record 21.6 billion. Stocks keep on creeping, up 30 points on the big board and as I mentioned, Austin mortgage pricing is hanging in there but commands your attention.
Slip sliding away, you know the closer your destination , [...]
