Chart of the Week:
Market Internals beneath the surface continue to soften, suggesting more near term corrective activity. Increasing 30-Day New Lows is a sign of a weakening tape. The NASDAQ, whose gains were much greater than the SPX or DJIA, has started its’ correction; The broader market has hung in better.
30-Day new lows S&P500
Technimental’s Kevin Lane notes “Bullish eco-reports, seasonality and the election year suggest the October to December period however should bring higher highs but with internals weak and weak seasonality trends in place (August-September) don’t be surprised if we correct more.”
Quote of th day: “Consumers need to have incentives beyond tax cuts, 0% financing and superbargains. They need job and income growth.” -Ethan Harris, Lehman Bros, WSJ