As our scans indicated, markets spent most of the day yesterday in a choppy back and forth price action but ended with closing relatively strongly. The markets remain in a sideways trend with lack of energy reflecting the uncertainty that continues to prevail. After a day of significant news delivered through various economic reports, traders and investors remain cautious. While the various reports indicated signs of stability, they also pointed to an economy that continues to worsen. With the continued expectation of further job losses keeping consumers from spending, the question still remains as to what will drive the consumption necessary for recovery. Further, the drop in consumer prices stoked deflation fears once again. Even the injections of liquidity by the US Fed appear to be having little effect on generating a desired level of inflation, pushing the Obama Administration into uncharted territory with respect to US Economic Policy. We certainly do live in interesting times!
Oil continues in its sideways trend in a wide channel from about $47 up to $53. Gold and silver remain in their sideways trend as well.
As of this writing, futures are positive and the DAX is positive, indicating a positive open. The market condition scans and the market bias indicators are both showing neutral signals indicating once again a choppy indecisive market that remains in a bottoming condition.
| Index | Change | %Change | Level | Phase |
| TSX | +14.49 | +0.16% | 9246.11 | Recovery |
| DJIA | +109.44 | +1.38 | 8029.62 | Recovery |
| Nasdaq | +1.08 | +0.07% | 1626.80 | Recovery |
| SP 500 | +10.56 | +1.25% | 852.06 | Recovery |
| Russell 2000 | +7.91 | +1.75% | 461.13 | Recovery |
| NYSE | +83.47 | +1.57% | 5384.97 | Recovery |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: moderate
Primary Trend: Remains down to sideways
| Sector | Phase |
| Consumer Staples | Bearish |
| Healthcare | Bearish |
| Technology | Recovery |
| Utilities | Bearish |
| Energy | Bearish |
| Financials | Recovery |
| Industrials | Bearish |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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