(Marco Bonelli) So far so good - macro-economic data keeps on rolling in and investors like it.
Weaker Durable Goods Orders were more than offset by better Consumer Confidence in February and a better Richmond Fed Manufacturing Index, all on back of the better Pending Home Sales for January and the Dallas Fed manufacturing Index that were reported on Monday.
GDP for Q4 was also revised up, so the economic recovery story is live and kicking unless Fed Chairman Ben Bernanke pours some cold water on it in his semi-annual Humphrey Hawkins testimony in front of the House Financial Service Committee or the Chicago PMI and the Milwaukee NAPM unexpectedly softened.
In terms of macro-economic data, the consumer related statistics tomorrow, personal income and spending, jobless claims and retail same-store sales for February will be particularly interesting as the consumer is perceived as the next wild card to drive economic growth further and higher.
Now as the Dow Jones finally broke the 13000 and the SPX confirmed it break-out from last year's high, will it convince all those investors to tap into the market, who are still cautious and more positioned on the sidelines? A handful of industry sector indexes in the technology and consumer space also broke through the highs from last year while most other groups still have room to catch up. 3000 in the Nasdaq Composite and 1400 in the SPX are equally important psychological levels and definitely within reach as long as the market doesn't get thrown a few disappointing data from the economic front into the face. So far so good!
Several short and long-term technical resistance levels and a continued very weak market breadth leaves a bad taste about the strength of the rally, but this is no new news, only something to keep in mind when we enter a new month tomorrow and think about the economic and earnings growth outlook.
Trade well.
(Marco Bonelli is the Managing Director of International for CL King & Associates in New York. The opinions expressed are his own.)
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