(Rich Bieglmeier) Thursday was another day of essentially spinning in place. Hopefully, the indexes are in the process of building a bullish right angle triangle; although, our research on RSI breakthroughs has iStock on the lookout for a test of the recent lows, at the very minimum.
Stocks skid until Italian Prime Minister Mario Monti said Greece will likely remain in the EU, and that a "majority" of the Union's leaders support creating eurobonds. Unfortunately, for Mr. Monti and the rest of the majority, it don't mean a thing if they can't do that German swing, and Germany ain't dancing to that tune.
Recently, an anonymous source was quoted "there is no legal basis for eurobonds. They are even explicitly forbidden [within EU treaties]." Sounds like der Deutschen Land is all aboard, no?
Yesterday's bottom bounce was sparked by QE3 rumors, today by more parlare a buon mercato (cheap talk).
Any lift off is going to be difficult if bulls keep getting weighed down by soft economic data. Thursday's Jobless Claims remained in the 370,000 neighborhood, which might well be the new 400,000 with the current work participation rate.
Durable Goods Orders were not so. Bloomberg reported that orders for computers, machinery and other capital equipment dropped in April for a second month, pointing to a slowdown in U.S. business investment. Minus out the transportation part of the equation and not even Pepe Le Pew could make beautiful music out of that report.
With a three day weekend coming up, it's hard to imagine bulls getting jiggy with buy tickets on Friday. By lunchtime, all the big hitters will be on their way out the door, and volume will dwindle like dandelions introduced to Weed be Gone.
iStock hopes everybody enjoys the three day weekend. To the families who have suffered losses as loved ones served their country, iStock sends along our heartfelt gratitude from the very depth of our soul - may God bless you and your families.