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Two Ways: What the Manufacturing Index Says About the Economy

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Results After the Open

The Institute of Supply Management, or ISM, will release figures related to its manufacturing index at 10:00 a.m. According to the Associated Press, economists predict the index will come in at 38, representing a contraction for the fifteenth consecutive month.

The index is based on a survey of members of the Tempe, Arizona-based trade group. After falling to a 28-year low of 32.9 in December, it has since been recovering, posting a reading of 36.3 in March. A reading below 50 signals a contraction.

See Professor Vinny Catalano's Bulls Out of Momentum.

From the Bull Pen: Bulls can look to CVS Caremark Corporation (CVS). Watch for a pull back to the 200 DMA (near $30). A sell stop can be set below that level.

From the Bear Cave
: The more closely watched figure was consumer spending, which accounts for over two-thirds of our economy. That number fell more than expected in March. If you're in the camp that the rally's running out of steam, consider the Ultrashort Q's (QID). A sell stop can be set 2 points below entry.

For expert economic insight and analysis, take a free two week trial to our Lavery Insight by former Merrill Lynch Chief Economist Jack Lavery.

Quick Check Around the World

Asian trading closed with the Nikkei 1.69% all other Asian markets were closed.

Europe was closed.

As of 8:20 AM EST, S&P Futures are trading +4 to 874.00, and Nasdaq futures are +5 to 1398.00.

A Look at Commodities

Over in commodities, crude oil is trading -0.13 to 50.99 while gold is -7.9 at 884.00 this morning. Silver is -0.100 to 12.250 and copper +1.80 to 207.10.

The dollar index is -0.2000 to 84.5750.

On the Radar

Economics

09:55 Michagen Sentiment Revised 61.5
10:00 Factory Orders -0.7%
10:00 ISM Index 38.0
02:00 Auto Sales
02:00 Truck Sales

Good luck today!

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No positions in stocks mentioned.

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