Today's Comments (Short Term Outlook)                             Printer friendly

Transports getting interesting Stocks rallied on light volume in front of the ISM and jobs reports.  The charts are not looking great, but despite $4.00+ a gallon diesel prices, the transportation index is actually trying to make a move to the upside. The S&P 500 is waiting on the next news event / economic data.  It is trading below the 20, 50, and 200-day moving averages and there's not much good to say here.                                      Chart provided courtesy of www.decisionpoint.com The Dow Transportation index has actually carved out an inverse head and shoulders pattern which, if broken to the upside on decent volume, could be quite bullish.  The transports are usually a good indicator of economic strength as they are the first to feel the effects of any change in the economic conditions. The chart did see a breakout but then shot down below the neckline again.  This could be a failed breakout and is something we need to keep an eye on.  But if we do see a breakout that holds, it will be very encouraging for the broader stock market.                                                                            Chart provided courtesy of www.decisionpoint.com The UK's paper, The Independent, seems to have pinned a depression on the U.S. economy already.                                     This is a bit of a joke since we haven't even had any official data proving that we are in a recession, although it seems likely that we could be, so a depression is just plain silly at this point.  This type of journalism is irresponsible and I liken it to nothing more than a National Enquirer type article, and you know what I think of headlines like this... they can be great contrarian indicators.  It could indicate that the worst is close to being behind us.  That's all for today.  Let's see what the ISM report has in store for us.  See you tomorrow! Have questions?  Visit our message board for answers.  Would you like to be on our email alert list?  We will send you an email when there is a change to our asset allocation or market outlook.  Your email address will never be given out.  Read our privacy policy.  By signing up you agree to the TSP Talk Terms of Service.  More details below **. Are you bullish or bearish?  Join the Weekly Sentiment Survey. Like what you're reading?  Tell a Friend about us.