A Consolidation Day Would Be Just Fine

After yesterday's surge, a day of consolidation would be just fine. The market never moves back up in a straight line, and building a base supports the next advance.

The market opened lower this morning, but has since pulled back closer to the flat line. Sears (SHLD) posted horrific earnings (or lack of), and the stock fell -14%. But LuluLemon (LULU) reported good earnings, and its stock is higher.

There also was an explosion in Minnesota that caused the closing of four pipelines, but two are now back up. This caused a quick spike in oil prices. But the Dept. of Energy said it will make the Strategic Petroleum Reserves available if necessary.

3Q GDP came in at +4.9%, a strong showing. Its hard to believe we are talking about the possibility of recession after growth like that, but this data is backward looking, not a predictor of the future.

Asian markets soared overnight, as I suspected. Hong Kong and Shanghai both gained more than 4%, which is the equivalent of a +500 Dow gain.

The ISEE is low again this morning (96), while the ARMS Index is high at 1.11. This should help support the market here.