I think we have an intermediate term selling climax here. Today's Business Times headline reads, " Moody market thinks party's over for now." But on the contrary it seems that the selling party is over for now. From a technical perspective, buyers seem to have taken over from the 1060-1065 region. If you can remember, 1065 was the low made back in May when we had the flash crash, so this number is of great significance. I think the confluence of "bad" news making the headlines and prices finding support at critical levels is a very bullish sign for the contrarian. Moreover STI seems to have hold steady in the 2920 zone and the huge consolidation seems like an area of accumulation. However, figures for the initial jobless claims have been better than expected but the market is not responding well. I think the release of the revised GDP figures tomorrow will be a market mover.
US: Initial jobless claims came in well at 473k, well short of the expected 485k.
Currency market: Euro/Dollar is back up to 1.27. Dollar rose against most of the other currencies.
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