Stock Market Comment

The market has done a bit better than I expected over the past
couple of weeks, and it is tougher to make the case that a classic
price consolidation is underway. The major concerns I have had
since mid - Sept. have been the 60% + move and whether there
could be a shakeout when the momentum of the leading economic
indicators begins to slow, as has happened over the past month.
Evidence of the latter concern does not yet appear to have
shaken the market as it has pushed irregularly higher recently.

I am still a watcher from the sidelines from a trading perspective.
The market is about 17% over its 40 wk. m/a, and the MACD
intermediate term reading -- 12 weeks plus -- is nearly as high
as it was during the major topping process of 2007. As well, the
SP 500 has priced in solid earnings (and sales) recovery through
mid - 2010. No outrage here, but we all need to recognize that
the early phase of profits recovery is "in the price".

I plan a detailed market fundamental update for next week.