We have had very good gains the past 2 weeks - the market may be in a consolidating mode, or a real change in direction.
Some snips from the following article:
cbs.marketwatch.com
[snip]
<<U.S. stocks looking sideways
Indexes stalled despite bullish jobs data
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 4:27 AM ET Nov. 8, 2003
NEW YORK (CBS.MW) -- U.S. stocks are heading into the coming week with mixed messages as investors mull further buying against heady year-to-date gains.
A sparkling jobs report -- often the most compelling economic data in a given month -- failed to spark movement in any solid direction on Friday.
The Dow Jones Industrial Average ($DJ: news, chart, profile) ended the week at 9,809, about 8 points above its week-ago level of 9,801. The index is now up about 18 percent for the year.
The Nasdaq ($COMPQ: news, chart, profile) finished the last seven days at 1,970, up 38 points, or 2 percent from its week-ago close of 1,932. The tech heavy index is up about 48 percent this year.
The S&P 500 ($SPX: news, chart, profile) wrapped up the week at 1,053, up 3 points, or 0.3 percent, from its week-ago close of 1,050. The index is up about 20 percent in 2003.>>
<<"The market is just going to trade sideways," said Peter Cardillo of Global Partners Securities. "Obviously, the market did not run up on the better-than-expected job report. It's just an indication that the market needs to consolidate at the higher end of the trading range and that it's a bit top heavy. The market is holding onto its big gains, but consolidating before the next run begins.">>
<<The strong job creation, teamed with last week's robust GDP number, may be raising the specter of an interest rate hike coming sooner than later.>>
<<Richard Williams, a strategist with Summit Analytic Partners, articulated the feeling that things are building to a head on Wall Street.
"We believe that the market is very close to a decision point that could be very significant, with potential upside or downside that could surprise the marketplace," he said in a note to clients.
"With recent economic data fueling the debate rather than resolving it, investors are about to either get their wish or be extremely disappointed depending on the outcome of the next few economic reports," Williams added. "The patterns suggest that a critical moment is at hand and the implications could be either very positive or down right nasty.">>
Don |
