In my previous post I provided an article from a newspaper in Holland. To answer a question, no we don’t speak Dutch. But that Google translator works pretty well

So where are we headed? A bounce in the coming days or weeks, sideways trading, or a continuation of the rapid declines from last week? Technical’s are conflicting in that we are oversold with respect to the indices, but price support/resistance levels have us hanging in mid air so to speak. Tough call here. But we do maintain that this is a bear market and that any rally’s will be short lived and an eventual decline to near 10,700 can be expected.

What happens after that point is reached is likely to be another attempt at a market rally which could last all through the summer to begin another decline lasting all the way into the end of the year. Will we go lower than 10,700? At this juncture, the economic conditions say that we will. Won’t happen quickly, but it does appear from all economic data and technical indicators that this may very well be a very long bear market.

Indeed a "generational" change in the financial markets may be upon us.

 

 

 

 

 

 

 

 

Dow Jones Industrials

 

What is on the agenda for this week? Actually a lot considering it is a short trading week here in the United States.

 

Monday:

9:45 am: June Chicago Purchasing Manager (last 49.1)

10:00 am: June NAPM-Milwaukee (last 45)

Earnings:

Before the Open: LPHI, RBN, UDW

After the Close: HRB, HMX

 

Tuesday

7:45 am: ICSC/UBSW chain store sales

10:00 am: June ISM Manufacturing (last 49.6), June ISM Prices Paid (last 87), May Construction Spending m/m (last –0.4%)

6:00 pm: Fed member Lockhart speaks on the economy

During trading hours: Vehicle sales data to be released

Earnings:

Before the Open: STZ, MSM, SMSC

After the Close: APOL, GTOP

 

Wednesday

7:30 am: June Challenger Job Cuts y/y (last 45.6%)

8:15 am: June ADP Employment Change (last 40K)

10:00 am: May Factory Orders (last 1.1%)

10:35 am: Crude Oil, Gasoline, Distillate Inventories

11:00 am: Hank Paulson speaks on the economy in London

12:00 pm: Fed member Mishkin speaks at a conference in Israel

Earnings:

Before the Open: SHLM, AYI, FDO, ISLE, SGK, UNF

After the Close: PRXI, WDFC

 

Thursday

7:45 am: ECB Rate Decision

8:30 am: Change in Manufacturing Payrolls (last –26K), Change in Nonfarm Payrolls (last –49K), June Average Hourly Earnings (last m/m 0.3%, y/y 3.5%), June Average Weekly Hours (last 33.7), June Unemployment Rate (last 5.5%), Initial Jobless Claims (last 384K), Continuing Jobless Claims (last 3.139M)

10:00 am: June ISM Non-Manufacturing Composite (last 51.7)

10:35 am: Natural Gas Inventories

1:00 pm: US MARKETS CLOSE FOR HOLIDAY

Earnings:

Before the Open: CREL, MESA

After the Close: SYMM, PAY

 

Friday

US MARKETS CLOSED FOR HOLIDAY