DJIM #33 2009

Coming to the middle of August, we are realizing that summer trading is almost over.  So far, this summer has been anything, but boring and some volatility may be coming due to Eco data late last week. 

We have had a long rally since March and we busted into new trading territory at the beginning of the current earning season.  In fact, there's not a lot more you can ask for, as a bull that is. Recently, we have been preaching for a pullback to give us some better entry points on this market.

Last Thursday, seemingly the market shrugged off the Retail Sales report, we presented the fact we were disappointed and questioned if this was a start to.. ‘Headwinds comin’?.  Despite markets rebound late Friday, we were given more reason that day to believe this as more disappointing data on consumer spending and sentiment emerged.    Since March, we’ve relied on ‘ The Premise’ here, this included tailwinds instead of headwinds for the market.  

Finally, we have some headwinds!.  Another aspect of the Premise was the ever present underlying bid supporting the market.  This will be tested by the looks of SPX futs tonight as global markets blow off steam with aggresive profit taking...finally.