More evidence that the Canadian economy is recovering is the rise in the new home index, which rose for the month of August. The Canadian dollar continues to rise on US dollar weakness and the relatively better Canadian economic fundamentals, trading in the range of 97 cents US this morning. In terms of earnings news, Johnson and Johnson (JNJ) reported this morning indicating a decrease in sales, earnings up and raised its earnings guidance. Intel (INTC) will be reporting after the market close today.
The market bias indicators show a bias for a statistical pullback or more sideways movement. The market condition scans are not showing a strong directional bias. Futures this morning are flat and the DAX is negative suggesting a flat to down open. It would not be unreasonable to expect a flat choppy sideways day today based on the market condition numbers and market bias indicators.
Gold, silver and oil continue to inch up. The US market indexes have been moving up for the last 6 days; however, volumes are below average, also indicating the lack of energy in the current market. The price bars are also small narrow range days. With all the indexes above their 200 day moving averages, we remain in a bullish market.
| Index | Change | %Change | Level | Phase |
| TSX | | Market Closed | | Bullish |
| DJIA | +20.86 | +0.21% | 9885.80 | Bullish |
| Nasdaq | -0.14 | -0.01% | 2139.14 | Bullish |
| SP 500 | +4.70 | +0.44% | 1076.19 | Bullish |
| Russell 2000 | -1.11 | -0.18% | 613.81 | Bullish |
| NYSE | +35.62 | +0.51% | 7051.16 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a positive bias
Energy: weak
Primary Trend: sideways to up
| Sector | Phase |
| Consumer Staples | Bullish |
| Healthcare | Bullish |
| Technology | Bullish |
| Utilities | Bullish |
| Energy | Bullish |
| Financials | Bullish |
| Industrials | Bullish |
| Materials | Bullish |
| Consumer Discretionary | Bullish |
Source: Telechart
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