The Bottom Line
World equity indices and most sectors have entered into a short term corrective phase. Most indices were up or down slightly, typical of markets that temporarily have lost momentum after a major upside move. Preferred strategy is to accumulate equity markets and sectors with favourable seasonality on weakness in order to take advantage of the October 28th to May 5th period of seasonal equity market strength.
Economic News This Week
August/September Factory Orders to be released at 10:00 AM EST on Monday are expected to increase 0.2% versus no change.
October ISM Services to be released at 10:00 AM EST on Tuesday are expected to slip to 54.0 from 54.4 in September.
September Leading Indicators to be released at 10:00 AM EST on Wednesday are expected to increase 0.6% versus a gain of 0.7% in August.
Weekly Initial Claims to be released at 8:30 AM EST on Thursday are expected to decline to 333,000 from 340,000 last week
Preliminary Third Quarter GDP to be released at 8:30 AM EST on Thursday is expected to grow at 1.9% versus growth at a 2.5% rate in the second quarter.
October Non-farm Payrolls to be released at 8:30 AM EST on Friday are expected to fall to 125,000 from 148,000 in September.Private Non-farm Payrolls are expected to increase to 130,000 from 126,000 in September. October Unemployment Rate is expected to increase to 7.3% from 7.2% in September. October Hourly Earnings are expected to increase 0.2% versus a gain of 0.1% in October.
September Personal Income to be released at 8:30 AM EST on Friday is expected to increase 0.3% versus a gain of 0.4% in August.September Personal Spending is expected to increase 0.2% versus a gain of 0.3% in August.
November Michigan Sentiment Index to be released at 9:55 AM EST is expected to increase to 74.2% from 73.2% in October.
Canadian October Employment to be released at 8:30 AM EST on Friday is expected to increase 15,000 versus a gain of 11,900 in September. The October Unemployment Rate is expected to increase to 7.0% from 6.9% in September.
Equity Trends
The S&P 500 Index gained 1.87 points (0.11%) last week. Trend remains up. The Index remains above its 20, 50 and 200 day moving averages. Short term momentum indicators are rolling over from overbought levels.
The TSX Composite Index fell 61.96 points (0.46%) last week. Trend remains up (Score: 1.0). The Index remains above its 20 day moving average (Score: 1.0). Strength relative to the S&P 500 Index changed from positive to neutral (Score: 0.5). Technical score slipped to 2.5 out of 3.0. Short term momentum indicators are rolling over from overbought levels.
….40 more charts, analysis and commentary HERE
