In this morning's Early Look I quoted our old friend of the fabric, Confucius. When market's trade in a proactively predictable range like this, maybe that's the only thing left to do - trade the range and philosophize...
The last few weeks of jobless claims data have given plenty for both perpetual bulls and perma bears to pontificate on. Last week's claims saw us shoot above the 4-week moving average, while this week's print takes us for another dive below it (see chart).
The New Reality is that consensus fears of the American Consumer's death were largely exaggerated. That well known phrase and a Confucius quote might give you the magic fairy dust of a Wall Street narrative fallacy.
Two consecutive weeks of improving jobless claims, is what it is - bullish for a market that tested the bottom end of its new trading range early this morning (886 SPX). Don't make this any more complicated than it is - trade the market and the data points that are in front of you.
Keith R. McCullough
Chief Executive Officer