Coolhand's Market Analysis

The broader averages bounced above and below the neutral line for most of today's trading session, but more conflicting reports regarding the EFSF in Europe caused sellers to return in mid-afternoon trade. The selling pressure drove the averages down the rest of the day where the they closed near their lows of the day. For more info on today's news regarding EFSF click this link.



Earlier in the day, there was news that September housing starts were up at an annualized pace of 658,000. Economists were looking for a number closer to 595,000. However, building permits fell to a rate of 594,000, while economist expected 610,000 permits.

September consumer prices were up 0.3%, which was in-line with estimates, while core prices rose 0.1%.

The Fed's latest Beige Book was released today and that revealed nothing particularly notable. Economic conditions remain somewhat tenuous and the outlook for businesses appears to be on the weak side.

Here's today's charts:



Back to sells for NAMO and NYMO, but they remain in positive territory.



NAHL and NYHL actually ebbed a bit higher today and remain on buys.



Back to sells for TRIN and TRINQ. Both signals are relatively neutral now.



BPCOMPQ rose a bit more today, but appears to be leveling out. That's not surprising given the volatility this week. It remains on a buy.

So the signals are mixed, but the system remains on an intermediate term buy.

I have nothing to add today. I am now 100% S fund and anticipating another rally over the coming days as sentiment and shorting remain supportive of prices.