Friday's Mid Day Action Report

The S&P 500 has eased up a bit since registering a session low just beneath 995, which has been considered a technical support line even though stocks slipped a few points below that mark earlier this week.

This session's decline has the stock market facing a week-to-date loss of roughly 1.4%. If the downbeat tone holds, this week will mark the first weekly decline for the S&P 500 in the last five weeks. The last hour of trading the market has shown resilience and it will be very telling in our view what happens today or if more selling picks up into the close.

Whether this is a more significant change of trend and possible pullback and or correction since the July low remains to be seen. The run up since July is historic in proportion without any significant retracement. The extremely optimistic forecast for GDP growth may be seeing some doubt coming into the market based on decreasing consumer income, lack of consumer spending and no measurable growth in employment. Capacity utilization numbers were not that impressive. Because the momentum in the market has been so strong to the upside I would expect some volatile in the next week as the bulls and bears battle this out. The argument is not so much that there are signs of better economic stabilization of the economy but more the degree of expected growth moving forward We are watching market internals in respect to breadth and advance declines data to help determine which side may be winning and will keep you posted... NYSE Adv/Dec 550/2355... NASDAQ Adv/Dec 418/2130.