Pre Market - July 27th 2007

We had the GDP numbers a few minutes ago. Normally the numbers we got would move the market into the positive direction. But so far the futures are not reacting. Futures are down fairly large this morning.

At 9AM the US Government's financial team will be appearing on CNBC to answer questions and make some statements. Will they say anything to settle the market? In my opinion whenever the Government feels the need put their talking heads in front of a camera then things must be worse then they want us to know.. I am sure that President Bush's financial team will talk the talk and tell us how great everything is. For the small investor/trader community may be influenced by whatever they will say. However the big money (hedge funds,etc) know the real story. They read the charts and see what is happening. Charts are the x-ray into companies and the economy. I strongly believe that chart analysis is a "leading" indicator of events to come. So if the Government's talking heads talk up the economy take it with a bit of skepticism and believe your own analysis of the markets.

I think we will have some early buying today that will be followed by mid day selling and then the day will end with some last minute buying. That is how I see what may happen today. With the indices at a support region there will be the early buying from those playing the bounce. But there is still a lot of fear out there and any upward movement will be cashed in and send it back down. The end of the day will be key. If we end higher than where we open then we are on our way to a recovery (albeit short term). If we end lower than confidence will be lower going into next week.

I say short term recovery because we are back down inside the trading range we were in a couple weeks ago. Now that we are back "in the box" we are going to bounce around in there until something makes us break back up or fall out of the box and it gets worse.