The 888 (880) level held overnight and futures rose slowly but steadily overnight:
The durable goods report came in with a 1.9% improvement and the weekly unemployment number came in slightly lower than last week at “only” 623,000. Frankly, that’s just a horrid number and yet where I read about it in three places they all made it sound as if it was a good thing! AND even worse, continuing claims rose again by a humongous 110,000 – placing continuing claims well above 6.6 million.
Econoday actually had this to say about continuing claims:
The alarming news in the report is a sizable 110,000 jump in continuing claims, in data for the May 16 week. The gain is the 19th in a row and puts total continuing claims at 6.608 million, a record indicating that jobseekers are having a very tough time finding work. Continuing claims are 495,000 higher compared to mid-April, a comparison that points to trouble for next week's monthly employment report. The unemployment rate for insured workers keeps rising each week, up another tenth at 5.1 percent and pointing squarely at a 9 percent handle for the total unemployment rate.
When I look at the media, I also see a lot of primping regarding GM going into bankruptcy… “It’s going to be a GOOD thing…” Seriously, look at CNN, that’s what they are telling you!
The media are in some type of mass psychosis as well – nuts!
Anyway, I’ll let Seth keep you up to date on the market moves, I really appreciate him and Point and everyone else who contributed to keep the thread going in my absence! I’ll be back this evening and will be close to normal tomorrow. I have some interesting Martin Armstrong documents to post regarding his review by the SEC. They have taken an interest, possibly because of all the work he put out, and are reviewing his case. He filed a brief with them and it is interesting reading, but I haven’t had the time to get through it all yet.
If you didn’t catch my post yesterday, I am leaning more bearish and do not think the 880 level will hold too much longer. It is the key level now, the pivot above is at 912 and the pivot below is at 848. The bond market is the KEY to the entire thing still… as I’ve been saying, something must give. But, do not be surprised if Bernanke comes out and calls rising interest rates a good thing and that he has it all under control, that it’s all a part of his plan to start pulling liquidity to keep inflation in check! LOL, if he does that, I’ll just die… but so will the economy! Of course the truth is that he’s being spanked for his indiscretion…
Have a good day,