Consumer Spending Can Make this Rally Last

A rebound in Consumer Spending, if this keeps up, stocks can continue to climb. Consumer spending in the  Q1 09 increased 2.2% after dropping at a 4% annual pace in the previous two quarters.

U.S. spending added 1.5% percentage points to gross domestic product, which fell at a 6.1% annualized rate in the first quarter, nearly matching the 6.3% drop in the fourth quarter.

The Fly from iBankcoin.com said it best today:

In short, the rally will continue because inventories need to be restocked. Until we see utilization rates drop, the market will go higher, or sustain current levels.

I repeat: we will not trade lower, unless factory utilization rates head lower from here.

Get ready for fun in the retail stocks, they are all up big today, take your pick