Friday we finally had seen a bit of weakness in an otherwise very strong market. It was as if the traders were looking for any reason to get a sell off. The uprising in Egypt gave that reason.
The Egyptian unrest is spreading through the middle east, and I’m very surprised that we are not seeing a downward follow through in the market averages. To see the markets up slightly Monday morning is a bit perplexing.
The Muslim brotherhood is calling for more protests and are attempting to get 1 million people demonstrating in Cairo.
Chicago PMI (Purchasing Managers Index) came out higher than expected, which would help fuel an upward move in the markets
Tuesday we will see the ISM, Construction spending, and Vehicle sales numbers come out. Last week we had Ford (F) report much worse than expected earnings driving that stock down. If numbers come up short in total vehicle sales, it could indicate that the economic recovery may not be as strong as people portray.
Thursday’s Jobless claims will also be a good indication of the economy’s direction. The factory orders and ISM non-manufacturing numbers will be of note as well to see if the economy is expanding.
Friday’s unemployment rate will be of note.