Consumer Confidence Kills The "Window Dressing"

Being the end of the quarter, I had a thought, what better way to celebrate than look at a 3 month chart. We ended on a down note thanks to those pesky consumers, obviously they haven't been listening to Kudlow or their confidence would have, oh, "soared". Instead, they worry about loss of income (hey, that's what credit cards are for). We were right on the cusp of a breakout when the bottom fell out, and despite relatively low volume, it was higher than yesterday, which should qualify as a distribution day.


Both the SPX and Dow are in the process of forming a near perfect head and shoulders pattern. There was enough of a volume increase here to give us a distribution day. That should make 5 on the Dow, 4 for the SPX. That's a "get the hell out" signal.

The Nasdaq is also forming the same pattern, although the right dhould is much higher than the left shoulder. I'll have to research it to see if that means anything.

The Russell 2000 is weakening more rapidly than the other indexes, which usually happens when the market slips into a correction.

Here is the sector performance for the quarter. My question is, if the financial sector is so healthy, why are they getting taxpayer bailouts? Why not the consumer staples sector? What do you need more, credit cards or toothpaste?

Speaking of bailouts, here is a story I caught about a company that is about to go bust. I know, it's a Mexican company, but you can't make decent fish tacos without corn tortillas.

And also speaking of market manipulation, Zero Hedge has a story about "revised" data for San Diego area homes sales. Doesn't surprise me, I live in the San Diego area, and houses just are not selling.

I will probably be a little early with the new highs update tonight, as I may not have internet access later this evening.