The good news is that job cuts are decreasing, layoffs are slowing. This is considered a leading indicator, supporting the fact that the economy is recovering. The sectors which are hiring include computer, healthcare, automotive, entertainment/leisure and retail. While the markets remain in a bullish phase, the short term market direction remains lacklustre.
Futures this morning are indicating a down open, along with the DAX. The market bias indicators remain neutral, providing further evidence of another choppy day, with no strong directional bias. This type of market makes swing and day trading methods more difficult because there is little or no follow through.
On a week to week basis, we have had two consecutive down closes, and the 50 week moving average on the indexes continues to point downwards. This suggests that the even though we remain in a bullish phase, energy is weak, and the risk of further retracement remains high. The other possibility is that markets continue to shift sideways as investors look to this quarter’s earnings and guidance for individual stocks to determine where to put their money.
| Index | Change | %Change | Level | Phase |
| TSX | -0.03 | 0.0% | 11394.96 | Bullish |
| DJIA | -29.92 | -0.31% | 9712.28 | Bullish |
| Nasdaq | -1.62 | -0.08% | 2122.42 | Bullish |
| SP 500 | -3.53 | -0.33% | 1057.08 | Bullish |
| Russell 2000 | -6.17 | -1.01% | 604.28 | Bullish |
| NYSE | -15.94 | -0.23% | 6910.88 | Bullish |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a slightly positive 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
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