We got the oversold rally in the markets and now, for them to continue to rise, they will need to show real strength that will have be attributed to a new uptrend and not just a powerful bounce from extreme pessimism.
Major averages are all facing stiff technical resistance and a grim macro picture. Positive seasonality is here till year end but to consolidate an uptrend with longer term implications we need to see the indices break out with conviction out of resistance.
If we once again start to fail at these levels, the least path of resistance is down and we will be looking for some short trade ideas.
ISM Non Manufactoring Index came out with a reading slightly under consensus. 52.0 vs 53.6 expected.
Factory orders were also lower with a contraction of -0.4% vs -0.2% expected.