Once Again, Futures are Flat, Indicating a Mixed Open For US Markets

The futures are flat and the DAX is up marginally, indicating a flat to mixed open.  The market condition scans continue to show a positive bias with good energy, but many stocks have had good runs and are near areas of resistance.  The market bias indicators are showing a statistical predisposition for a correction.  Under these conditions, entries become more risky and the potential for a reversal or a shift to sideways movement is greater.

The Bank of Canada makes its interest rate decision today, with consensus that there will be no change.  The Bank of England kept interest rates unchanged at 0.5%.  The Canadian Trade deficit was $1.4 billion in July vs. $100 million in June.  The U.S. trade gap widens to US$32.04 billion in July versus $27 billion in June.  In both cases, imports in both countries are up.  At the same time, the US Labour Department releases the weekly jobless claims report. Approximately 560,000 Americans are expected to have filed for their first week of unemployment benefits last week, down from 570,000 in the previous week.  Continuing claims, a measure of those receiving benefits after the initial payment, are expected to rise from the 6,234,000 level reported last week.

Gold and silver continue to pullback today.   The mining sector along with financials weighed on the Canadian markets yesterday.   The International Energy Agency (IEA) has raised the global demand forecast for oil in 2010, on the back of Chinese demaind.   The US Department of Energy releases its inventory report today at 11:00 am, with the current expectation that the inventories have decreased by 1.8 billion barrels.

Index	Change	%Change	Level	Phase
TSX	-105.13	-0.95%	11000.17	Bullish
DJIA	+49.88	+0.53%	9547.22	Bullish
Nasdaq	+22.62	+1.11%	2060.39	Bullish
SP 500	+7.98	+0.78%	1033.37	Bullish
Russell 2000	+10.02	+1.74%	586.40	Bullish
NYSE	+46.33	+0.69%	6772.40	Bullish

Source: Telechart

Short Term market outlook:

Bias: Scans showing a positive bias

Energy: moderate

 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