US stock indexes closed in the red yesterday, after worse than expected claims data. Economists had forecast claims increasing to 280K but came out at 290K just below the 300K threshold.
Today on the economic calendar we have from the US the retail sales in October that is expected to rise from -0.3% to 0.2% showing an increasing consumer spending. Also we will have the Reuters/Michigan Consumer Sentiment Index in November that is estimated to rise from 86.9.3 to 87.5 displaying that consumers are willing to spend money.
Usa500 fell but establish a new record high at 2,043.25 but close in the red near the low of the day creating a shooting star pattern. The Index is in a bullish phase and stalling at record highs. Thursday we had a hanging man pattern, yesterday a shooting star pattern all signs of reversal and stochastic is showing an extreme overbought market so we may expect a downward correction.
Expecting downward move to 2,000 on a break of below Wednesday low at 2,026.50 (scenario 1).
Usa500 is a CFD written over S&P500 futures.