Market Montage

Good data on ISM Non Mfg – new orders was the star up 1.5 and at 56.0.  Employment however fell 1.9.  This report is more important to the U.S. economy as there is far more service work than manufacturing work.

Full report here.

"The NMI™ registered 53.7 percent in May, 0.6 percentage point higher than the 53.1 percent registered in April. This indicates continued growth at a slightly faster rate in the non-manufacturing sector. …

Some interesting econ data this morning – the ADP employment came in light but a bit of a jaw dropping news in quarterly (Q1) labor costs which showed a massive drop.   That said, Q4 2012 was back loaded with compensation to avoid the tax rates of 2013 so there is a lot of noise in the data right now.  But longer term, labor costs have really stagnated in the country as the era of outsourcing and automation continues to crush labor and benefit those who own capital.

As for the S&P 500 we are in the fourth mini correction of this trend from mid November, and perhaps the …

The DJIA is up 20 Tuesdays in a row.  This streak is now known by everyone.  As stated in the past when everyone is aware of something it usually stops working.  But this has been said for quite a few weeks now.

More importantly than that quirk we have a broken wedge in the S&P 500, and thus far the retracement to the bottom of that wedge (triangle) today has been relatively uninspiring.  At minimum bulls want to get back into this wedge, and then the next step above the top side of it.  Bears want to see things remain below and continue to see lower highs being made.

Believe it or not this is the …

Contractionary number in ISM Manufacturing as we have a reading below 50.  Expectations were 50.5 to 51.0 range.  Nothing much good in the details either as employment and new orders (especially) stunk.   We shall see after the knee jerk down if the market "embraces" the report since bad = more and longer QE.

Full report here. …