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Consumer still has income and spends it

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The personal income numbers are out this morning and they show that personal income rose 0.4% and personal spending increased 0.3%. Both numbers were forecast by analysts and show that the consumer does have some money to spend, but not a lot. The big number comes later today at 10:00 EST and Michigan Sentiment. Economists are expecting a 90.5 reading versus a 91.8 prior reading.

Equity futures green

Equity futures are green this morning and much like personal income and spending, they are slightly higher. Currently we are seeing S&P futures (SP01M) trade higher by 4 points, NASDAQ futures (ND01M) are higher by 13 and Dow futures (DJ01M) are up 28. Fair value for the S&P 500 today is $9.12. This value will not change during the day. Computers are set for program buying at $11.50 and set for selling at $7.04.

Yesterday's Point/Figure chart of the day

Yesterday I drew attention to what I felt was the "point and figure" chart of the day. One stock I had had my eye on for a bullish trade on a pullback was shares of Macrovision (NASDAQ:MVSN). The reason for this was that the stock had given a powerful "buy signal" on March 22 at $41 and completed a pattern known to point and figure aficionados as the bullish triangle. Below is a 60-minute chart of MVSN and this stock might be one for traders to look at on the bullish side this morning with a stop under the $40 level. Longer-term bullish price objective using the vertical count technique from point and figure is $76.

Macrovision Chart - 60-minute interval

Yesterday at 01:30 I displayed the point and figure chart of MVSN from www.stockcharts.com. Here is a 60-minute chart that a trader would be more likely to use in helping control a trade in the stock.

Jeff Bailey
Senior Market Technician

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