In last night’s blog post, I mentioned concern that the market is currently topped out until the debt ceiling issue is resolved. I still believe this is the case and stocks will spend the next week, or two, hitting their heads on a market ceiling even with solid earnings trying to push them to new highs.
Today, we saw good numbers from JPM and so-so economic data in pre-market. However, Bernanke threw cold water on the market and the small attemp to move up in early trading was quickly squashed. It’s going to take a lot to move us into a new bull trend and that’ll likely happen after the debt ceiling is raised. Until then, today’s great earnings report out of GOOG could give us a gap up in the morning. But, you have to be careful.. We’ve been fading into the close all week and tomorrow could be a trap on a possible strong open.
On tap tomorrow:
- options expiration
- CPI
- Core CPI
- Empire Manufacturing Index
- Industrial Production
- Michigan Consumer Sentiment
- Michigan Inflation Expectations
- MAT and C report earnings
