Analysis:
Yesterday's Analysis predicted that "the Philadelphia Fed Survey will bring no positive surprise. This will give the market the reason to take profit and close lower." Today the Survey came in negative, and the market spent most of the day in the negative territory and closed a fraction of a point lower. Looking ahead to tomorrow, the Consumer Sentiment is difficult to predict because the depressed home prices may continue to outweigh the improvement in employment outlook. The CPI excluding food and energy will be flat or negative, as retailers lured shoppers into spending with large discounts. The concern on the economy will give the market that fails to break resistance a reason to drop to as low as 1,110.
Strategy:
Sold short at 1,122
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