Wednesday Outlook: Holding Support

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 |  Includes: IEF, IWM, IYR, IYT, MDY, QQQ, SPY, TLT, UDN, UUP, XLB, XLF, XLI, XLY
by: David Fry

Was a positive ISM report the spark bulls needed to seize the tape and put a short-squeeze on? It wouldn’t take much with markets much oversold. But, higher prices paid are hurting manufacturers in this inflationary environment and passing these costs to customers is becoming increasingly difficult. Meanwhile inventories are growing and new orders are slowing. This is a pretty thin reed for a rally.

Inside the numbers the troubles plaguing investors and the economy are still omnipresent with commodity prices rising, transports tumbling and emerging markets faltering.

Volume was very heavy but breadth wasn’t impressive. [With columns, please eyeball the math. Poor Yahoo just can’t do it. We’ve had good suggestions and many folks and agents “trying” to contact them to fix it. Do they care??? The answer seems to be obviously not.]

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