So Far itís only Classed as a Correction

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So Far itís only Classed as a Correction

Post  harpal1980 on Wed Sep 02, 2009 4:40 am

The major U.S stock indices followed Mondayís momentum yesterday,
opening the 1st day of September with a nose dive. The U.S indices
started the session higher, backed by economic data but quickly lost
their steam, to close with an average loss of 2%. Even though the
current trend is still bullish one cannot ignore the massive volume
that was attributed to yesterdayís session, showing the selling
pressure. From a technical point of view the S&P500, broader market
index has begun a correction whereas 975 points could act as a target
level of support.

Economic data didnít support the selling pressure yesterday, as the
U.Sís ISM manufacturing index jumped to 52.90 points, while their ISM
manufacturing index showing an astonishing figure, coming out at 65.00
points, compared to a consensus of 57.30. Furthermore pending home
sales exceeded expectations by 1.4%, while the auto industry showed an
improvement, as total vehicle sales increased by 14.09M. One must note
that the sales are due to the Cash for Clunkers program.

Financials showed the most weakness during the session, dropping by
5.37%. The utility sector ,known as a more secure sector during a
bearish market, finished the session lower by only 0.79%.

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