Analysis:
Yesterday's Analysis predicted that "the Durable Goods Orders will bring a positive surprise, as the demand for manufacturing equipment from overseas remains robust, and the New Home Sales will rise from historic low to at least 305,000 units in light of concerns on titles of foreclosed homes." Today the Durable Good Orders rose 3.3%, and the New Home Sales rose to 307,000. The market finished slightly lower due to concerns about the size of the Fed's QE2. Looking ahead to tomorrow, the Initial Jobless Claims will drop below 450,000. As a result, an optimistic economic outlook will drive the market higher to close near 1,190.
Strategy:
Hold long at 1,160
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