The markets closed up today. The SPYs were up 1.04%, the QQQQs were up .3% and the IWNs were up .94%. Starting at about 11AM, all three markets traded in a sideways pattern, indicating supply and demand were in equilibrium. This looks like mostly a technical bounce, nothing more. This makes more sense especially considering
1.) New home starts dropped 16%,
2.) The PMI was recessionary for a second month in a row and
3.) GDP was revised down to 2.2%.
The bottom line is the economy appears to be slowing and the housing market hasn't hit bottom in any meaningful way. We still have to wade through some basic problems.
