Treasuries are on the move higher and stocks are having difficulty finding any positive momentum. So where do we go now?
* The markets apparently need to see some positive turn around in the current data rout that is occurring. We see Housing data this week , but even numbers above expectations will not be enough as projections are at dire levels. Housing seems years , yes years away, from turning to healthy levels. Best chance for change here is fruition of rumors to directly help homeowners on principal amounts. Crazy yes , but also the only chance.
* Jobs? claims are rising rapidly headed for 500k plus weekly readings on an index where below 400k is what is needed . Waiting for “trickle down” from prior Fed action appears a lost cause!
* Election change? many want lower taxes rates but with so many out of work The GOP will have it’s hands full finding voters here as public outrage for the 3 trillion in 2008 stimulus to save the TBTF banks, who longer lend to main street, appears to be reaching an all time high.
* It may be some time till we see any trend change in the economy. Any talk of more direct Fed action( buying more treasuries won’t do it) may spur a rally. But markets are feeling duped by the Fed’s actions last week.
* S&P 1065? the exact middle of the dominant 1002 – 1130 range. Movement from here will be very revealing.