More Weakness At The Open

The market has opened under selling pressure this morning, but found some footing relatively early after a stronger than expected housing report.

Existing home sales hit 6.24M vs. 6.14M consensus. Since the housing sector is seen as the weakest link in the economy, any positive news helps to improve sentiment.

Earlier this morning, the durable goods report came in weaker than expected. This was hurting the market before the open, and also driving bond yields to new lows. The 10-year yield broke below recent support, falling all the way to 4.49%.

Yesterday's distribution day was pretty strong, with more than 90% downside volume. That should help to work off the overbought condition pretty quickly. I believe the market may bounce a little, then pull back again, and that would offer another good buying opportunity into year-end.

In other news and notes:

• Did you watch The Bachelor last night? (I predicted Jen)
• Heavy insider selling at CROX (Barron's)
• GOOG inks YouTube partnership with Verizon Wireless
• JTX misses EPS; stock down slightly
• Jeffries starts WFR at Buy, $54 target
• WR Hambrecht starts FMCN at Buy; $85 tgt
• TIVO launches new product placement service
• Oil breaks above $60 level; dollar down again vs. euro
• FORM removed from Goldman's Conviction List
• PALM lowers guidance; stock gaps down
• UARM downgraded at Morgan
• OXPS announces 24-hr futures trading

long GOOG, WFR