Archive for September 27th, 2007
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GDP coming in line with
| New Home Sales – Level – SAAR | |
| Actual | 795,000 |
| Consensus | 835,000 |
| Consensus Range | 790,000 to 870,000 |
| Previous | 870,000 |
New home sales down strong equals saguin market. The market is busy consolidating, marking up quarterly preformance and watching the technicals. Taking that into account with the jobless claims coming in solidly below expectations which is further confirming that housing is not leaking into the rest of the economy in terms of job growth.
| New Claims – Level | |
| Actual | 298K |
| Consensus | 320K |
| Consensus Range | 310K to 320K |
| Previous | 311 K |
Very interesting stuff.
Technical Speculation
I am going to attempt to explain what I am seeing in the market from a very technical and speculative perspective. First off, the August action looks like a reverse head and shoulders. This is in fact bullish. Seconly, I am seeing consolidation after the Fed rate cut in the 1525-1538 levels with 1516 as support and 1538 as resistance. This is forming a pennant going from the Augst lows of 1370 and the July high of 1555. This looks to be reaching a turning point around the resistance level of 1538 and should be developing in the next few weeks.
Important levels to look for, 1491-1494, 1507-1509, 1520-1538, 1553-1555, 1568-1570.
If we break out of a consolidation through a pennant formation to the upside I think we could see the 1568-1570 level which would bust through all resistance levels. If the 1538 range proves to be resistance I believe we could get knocked down to the 1520 and on down to 1491.
Just a small prediction is all
| “If you can’t explain it simply, you don’t understand it well enough.” |
| - Albert Einstein |
