Tuesday, January 27, 2009

Maybe they'll change it to the US Consumer Doubt Index

US Consumer Confidence fell to it's lowest level since the survey was established in 1967. Individual data points aren't terribly important, but it is worth watching the trend and the trend is still heading down.

"A key measure of consumer confidence fell to an all-time low in January, according to a report released Tuesday.

The Conference Board, a New York-based business research group, said that its Consumer Confidence Index fell to 37.7 in January from the revised 38.6 reading in December. The month's reading represents an all-time low going back to the index's inception in 1967. "

Having said this, the markets continue to yawn at the wealth of terrible news on the wire. Thousands of job cuts have been announced, more and more companies are withdrawing future guidance, and the markets are holding up.

I think it speaks to the power that the technicians hold in the market today. Fundamentals say the stock market should be down about 25 -30% from here, but the chart readers think it's going back up another 5% in the next couple of weeks, so it seems to be self-fulfilling.

Either that or traders are all out getting the "Blagojevich" hair cut -- I hear it's all the rage with the kids on Wall Street these days.

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