End markets Bearish week-October brings action will Fire up next week.

In the last weeks, financial news weighed on the market. Initial jobless claims rose sharply for the third straight week. New applications for increased at a higher level by November 2009.The Philly Fed is expected to increase 7.5 and decreased by almost the same amount that was a huge Miss and deteriorating economic conditions.

Even the recent takeover of news (Potash, McAfee and 3Par) was not enough to buoy on the market. Companies are flush with cash and they can work. inventories are valued at attractive primarily with two-year yields below.5%. This condition is holding an offer on the market and I believe that the upcoming decline will contain.

That being said, there is not enough money to be made to a correction of 10% to 15%. End of the period of profits is our retailers we weak guidance.Cisco changed the melody and rapidly changing conditions reported that complies with the surprise fall Fed Philly last week and deteriorating employment. Greek bond yields rose Friday and may boost euro credit concerns. We are approaching the weakest season for stocks and selling pressure will increase one week from today.

China will release the PMI (9 30th) and I think that would fall short of the 50. showing economic contraction. The whole world is counting on China to pull us out of this recession. Two weeks ago we saw a dramatic market reduced by China that imports fell.The PMI will strike a nerve as retailers preparing for a busy week domestic economic releases.

I do not think we will see a large decline this week. durable goods orders dropped two straight months, and a blue number won't catch by surprise.This number is so volatile that traders tend to take with a grain of salt.GDP is expected to fall by 2.4% to 1.4% is already considered this news, but you may see a slight downturn in the market because it will have a negative psychological consequences. another poor initial jobless claims numbers this week will almost guarantee a horrible employment report on the day before the day of work at the weekend.

This is the calm before the storm. Continue to purchase money October brings this week, the action will be light this week and there is a good chance that it can be reduced slightly volatility.

Once the sale takes hold, it will be difficult to enter put positions.

The current chart you can see that the market is very narrow range of last year; If we break below support SPY 105, will accelerate the sales pressure.