The Dow gained another 20 points to 22,661 on lighter trading volume. Both IBD and BTS indicators are positive even though some investment managers like Russell Investments are pulling their hair out hoping for a pullback because they are in cash and missing all the gains.
Economic data continues to be robust. The ISM service sector index came in at 59.8 easily beating expectations calling for a reading of 55.5. This strength is suggesting the US economy may be steamrolling any negative effects from the recent hurricanes in Florida and Texas.
CNBC released its All-American Economic Survey for the third quarter and every major metric within the pole – economic outlook, housing, wages and equity markets – rose to a 10 year high. The survey showed 43% of the public thinks the economy is in good or excellent shape while 36% think it will get better and 23% say it will get worse. The percentage of people who think it will get worse was down 6 points from the prior quarter.
European markets are a bit wobbly thanks to a constitutional crisis in Spain that some feel could be worse than Brexit because Spain is still recovering from a financial crisis and owes the EU lots of “geld” and if the Catalonian’s attempt to bolt then tax revenue will take a hit. All kinds of separatist movements seem to be springing up in Europe these days ranging from Denmark to Belgium to Italy and Scotland where whiskey and golf go hand in hand. The EU is busier than a one legged man in a fanny kicking contest.