Courtesy of John Nyaradi.
The stock market roller coaster ride continued today as major indexes grappled with economic reports at home and news from Europe.
The Dow Jones Industrials (DIA) and S&P 500 (SPY) took a wild ride today while gold (GLD) continued its sell off.
Gains were fueled by hopes for yet another bailout for Greece in Europe and a hope to stop contagion there while infighting among major players continued. I suspect that things are getting desperate as the speculation is rampant about leveraging their bailout funds to stop the crisis.
At home New Home Sales came in at 295,000 versus a previous 302,000 and this year’s home buying season hit a record low.
The Dallas Fed Manufacturing Report dropped to -14.4 from -11.4, its fifth straight monthly decline as the U.S. economy continues to slow.
The Senate and Congress continue to wrangle over spending issues and threaten another potential government shutdown by Friday.
Tomorrow comes July Case/Shiller Home Price Index, September Consumer Confidence and the Richmond Fed report.
Fear continues driving markets and we can expect this to continue as we move into October. From a technical standpoint, nothing changed today. We remain in a bear market and can expect these violent rallies and declines to continue.
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