Sales of existing homes
Sales of existing homes data is due at 10am EST. Hold onto your hats. I think the number has to be good for the market to rise today. The markets have been trending up and were up big yesterday on positive consumer sentiment. Positive consumer sentiment has to translate into Americans spending money. If it does, in the form on home purchases, the market will, in my opinion trend higher despite what is a terrible economy. I don’t think it will be a massive move to the upside, but I do think we’ll avoid two weeks ago when stock backtracked. If housing sales are good today, I look for the upward trend in stocks to continue until 9,000. Since I don’t believe we are out of the woods yet, I think bad news will continue to keep the market from really breaking out. But from where the market was in early March (6,500), that’s a pretty strong move (currently a 30% gain). The sobering reality…stocks were at 9,034 to start 2009.
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