Economic Data Continues To Support Recovery and Rate Hike

Thursday’s economic data supported the Fed’s thesis of continual economic recovery as this week’s Jobless Claims report indicated a healthy labor market with unemployment claims at only 271k vs consensus @ 270k and previous @ 276k.

Almost sealing the deal for an interest rate increase in December wasOctober-2015’s  Leading Indicators Index which jumped to 0.6% vs. previous month @ -0.2%. This was its first positive reading over the last three months.

Energy and precious metals, two widely followed commodities, put in solid performances today while oversold Utilities and Transportation stocks led the way for equities. Otherwise, it was the second time this week where a strong bullish move was subsequently followed by relatively unchanged prices.

Performance Summary

• Trends: ST = short-term; MT = Intermediate-term; LT = long-term

Market Condition

Yesterday, the SP-500 index climbed above its 22-day moving average and although today was a lackluster day, it easily held the support of its 22-day moving average. Volume, which is not indicated on the chart below, was less than average and the prior two days of trading saw the market advance on continually decreasing volume. The market is still in an oversold condition so it is premature to blame it buyer exhaustion.

Good day/evening from Hillbent for the Market Direction…