Signs of the Bottom Series -- Recovering Leading Indicators

There is one set of economic number that predicts economic activities a few months down the road. Yes, it's the Leading Indictors released today. Leading Indicators for September rose for the first time in 5 months even though it is expected to continue negative. Even though leading indicators rose in September, it is still overall down for the year. However, it does seem to suggest recovering economic activities and pumped the much needed optimism in the stock market to hold up the 8500 support level.

The Dow seems to be in the early stage of a short term neutral trend right now, held up by the 8500 support. Indeed, it could go sideways for significant period of time like it did back in August before deciding a breakout direction. With the primary trend still bearish and a lack of a strong bottoming signal, the inclination for a breakout remains to downside.