Markets Looking Dull for Today

After two down days, markets continue to look lacklustre for today.  The market condition scans and the market bias indicators are showing no strong directional bias.  Energy is weak and we are heading into the week end.  It would not be surprising to see stocks continue to drift down.  The morning futures are slightly positive along with the DAX so we may see a positive open.  The catalyst for the sell off appears to be poorer than expected home sales in the US, which raised fears that the economic recovery is slower than expected.  On the other hand, markets have been bullish and technically overbought for many days, and reversion to mean may just be occurring.  Institutional action in particular, according to the scans, seems to be waning for the short term.  This is likely because the institutional investors are waiting on earnings information. 

RIMM reported its earnings after hours yesterday and were slightly below expectations on both the quarter and their guidance going forward.  Since this stock is highly correlated with the overall market, it had started to sell off and we will likely see a gap down this morning.

This morning the durable goods report was also disappointing, which may likely continue to push the markets down.  New home sales data is expected around 10 am, with an expectation of a rise in seasonally adjusted sales numbers.  The G20 meeting continues in Pittsburgh.

The negative correlation between the US dollar and Gold continues to be in play as the US dollar moved up, gold dropped.  Oil has dropped below its 50 day moving average in response to the much higher than expected inventory levels.

Index	Change	%Change	Level	Phase
TSX	-231.78	-2.01%	11285.76	Bullish
DJIA	-41.11	-0.42%	9707.44	Bullish
Nasdaq	-23.81	-1.12%	2107.61	Bullish
SP 500	-10.09	-0.95%	1050.78	Bullish
Russell 2000	-11.62	-1.89%	601.75	Bullish
NYSE	-102.38	-1.47%	6862.31	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a neutral bias

Energy: weak

 Primary Trend: sideways

Sector	Phase
Consumer Staples	Bullish
Healthcare	Bullish
Technology	Bullish
Utilities	Bullish
Energy	Bullish
Financials	Bullish
Industrials	Bullish
Materials	Bullish
Consumer Discretionary	Bullish

Source: Telechart