We are in no doubt a nice strong steady climb. All indicators are telling us that our bullish move
since early September still has the strength to move upward. We have no signs of slowing yet. We have already touched the resistance level before we hit the high we achieved the second half of April at 121.86. We have a nice move to make before we are challenged again.
There is much to look forward to it appears on the horizon that may keep us going. It appears:
- We are shipping more good around the country because people are slowly buying more.
- In consumer good and railroads (CSX hires 200 more workers), capital spending is rising and this is important to growth.
- It appears that credit card debt right off is declining.
This is good news, but at the same time, the news this coming week may damper the enthusiasm by reminding us just how bleak our economy is at present. I believe we get industrial production and Capacity Utilization. Neither of these are supposed to shed any real light. Even housing starts…the improvement are not really good news as much as just…not as bad. So maybe we should look long term but short term may bring us a resting period before we move up again.