This is the kind of session for folks who prefer fishing over pick-up basketball.  You have to have patience and appreciate the nuances of what’s going on.  The market is down, but it was off a lot more, and for the third consecutive session buyers emerged right at potential tipping points.

These buyers are crafty and not going to overplay their hand.  Meanwhile, everyone else is still waiting and watching.  Some are watching for more news, and others just want to see greener on the screen before they make the leap.

Financials are finally moving after all the big banks beat. There is mostly a wait and see attitude, which is much better than blindly selling or even the hissy fit the market would love to lunge into in a last ditched attempt to get Congress to do the right thing.

Economic Data

The Philly Fed report crushed consensus, standing at 32.3, sharply up from 15 in September and well above expectations of 14. Manufacturing activity in the region expanded in October for the fifth consecutive month after hitting long-term lows in April and May. The index for new orders rose 17 points to 42.6, with nearly 55% of the firms reporting increases in new orders vs 42% last month. Shipments also increased 10 points to 46.5.