Durable Goods Order in Focus Tomorrow...

The Dow formed a small sideways candle today as investors await how tomorrow's durable goods order would turn out. Yes, its hard to see how the higher consensus could be realized under such tight demand. Durable goods orders is a leading indicator for sales of tomorrow and is one of the economic data that analysts watch for signs of stabilization and recovery. Even if tomorrow's data turned out ok, investors would still be concerned about reactions to Friday's GDP number (see economic calendar). As such, the next two days are going to be volatile days going into the weekend.

On the technical front, it is certainly not surprising to see the Dow pull up even for a few days more and still remain in all out bear trend. The final capitulation is definitely going to happen before this is going to get better.