Noon update:
Shorts get squeezed as we barely get a drop at the open. Volume is light, so expect SPX 50 dma to be pretty strong resistance (1487). COMP support should be at 2595/2600 on any correction. Note that the ES December contract hit 1500 and backed off. I'm not sure if there is any significance in that, but it's there. AD lines are positive, so bulls get the benefit of the doubt, but we are quite overbought on the daily and one would expect some kind of a pullback before heading higher.
VXN is not really confirming this rally, at least for now.
Bulls need SPX to close above 1480/1481.
Sept. 4 (Bloomberg) -- Manufacturing in the U.S. grew at the slowest pace in five months in August as companies reduced orders after borrowing costs climbed.
The Institute for Supply Management's factory survey, one of the first to show how the mortgage crisis is affecting the economy, points to slower growth while not signaling a downturn.
The ISM said today its index fell to 52.9 from 53.8 in July. Economists forecast the measure would decline to 53. Separately, the Commerce Department in Washington said construction spending unexpectedly dropped 0.4 percent in July.
Shorts get squeezed as we barely get a drop at the open. Volume is light, so expect SPX 50 dma to be pretty strong resistance (1487). COMP support should be at 2595/2600 on any correction. Note that the ES December contract hit 1500 and backed off. I'm not sure if there is any significance in that, but it's there. AD lines are positive, so bulls get the benefit of the doubt, but we are quite overbought on the daily and one would expect some kind of a pullback before heading higher.
VXN is not really confirming this rally, at least for now.
Bulls need SPX to close above 1480/1481.
Sept. 4 (Bloomberg) -- Manufacturing in the U.S. grew at the slowest pace in five months in August as companies reduced orders after borrowing costs climbed.
The Institute for Supply Management's factory survey, one of the first to show how the mortgage crisis is affecting the economy, points to slower growth while not signaling a downturn.
The ISM said today its index fell to 52.9 from 53.8 in July. Economists forecast the measure would decline to 53. Separately, the Commerce Department in Washington said construction spending unexpectedly dropped 0.4 percent in July.
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on Tuesday, September 04, 2007 at 9/04/2007 12:04:00 PM.
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