From Briefing.com
Market View
Market Outlook
If you're looking for one word to describe this week's action it would be consolidation... Though the indices seesawed quite a bit, in the end the net changes were nominal... Indices simply continue to consolidate, as they mark time in anticipation of an eventual turn in the economy and corporate earnings... DJIA bouncing in 11,000-10,000 range, while Nasdaq ping-pongs between 1900 and 2300.
Range trading isn't exciting, but it's a necessary transition from bear to bull market... Especially, when you're coming out of a bear market as nasty as this one.
One typical element of a sideways market is rotation... Money rotated out of housing, auto parts, building material and retail-apparel stocks into oil, oil services, telecom equipment, entertainment, semiconductor and health care stocks... Basically, traders took some profits from recent hot spots and did a little bargain hunting in beaten up groups.
Of course, earnings will remain a big story next week... With many of the big names - especially in tech - already having reported results, tone of numbers over next couple of weeks should be slightly better... Could set market up for run to upper end of range... However, if indices are to maintain the upward momentum exhibited late this week, will have to get cooperation from economic data... Collection of Consumer Confidence, Auto Sales, Construction Spending, NAPM, Factory Orders and Employment data will give traders plenty to chew on... See Briefing.com's Economic Calendar, for Briefing.com/Consensus estimates, prior period comparisons and actuals. |
