Let's look ahead.
1.) Today has a huge down day on record volume. None of the daily charts found a meaningful technical bottom.
2.) The markets have rallied for the better part of 6 months without a major correction.
So before we get to tomorrow's economic news we already have a strong bearish bias.
Tomorrow we have GDP, new home sales and the Chicago PMI.
There's been a lot of talk about a large downward revision to this number -- a revision in the range of about 1% in GDP growth. If this happens the US economy will have three straight quarters of sub-par growth.
The PMI has been hovering around 50 for the last few months. While there was a big upward move in the NY Fed index this month, the Philly index was mediocre.
New homes sales are also important, especially with the problems in the sub-prime mortgage market right now.
Each of these numbers is important, although I think the GDP revision -- if it's large -- will be the big number of the day.
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2 comments:
Subprime lender FMT cancels tomorrow's release of earnings numbers, will not file 10k:
http://biz.yahoo.com/prnews/070227/latu102.html?.v=81
Sector will get beat like a red-headed stepchild tomorrow.
Thank you BondDad. I came here first to see if you had something intelligent to say about today, and was not dissapointed.
Strange horror that I feel watching this. The timing is bad for my little family, but we will be fine one way or the other. On the other hand, I have not been able to believe how long the economy has kept going when I felt that it wasn't so wonderful.
(Thanks to reading people like you and Barry of the Big Picture.)
JWC
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