Markets fall after “breakout” by S&P 500, economic data “still weakening”

Markets were mostly lower on Thursday.

The S&P 500 fell 0.3 percent and the STOXX Europe 600 fell 0.5 percent but the Nikkei 225 rose 0.4 percent.

US economic data on Thursday were mixed. The Chicago purchasing managers index fell to 43.2 in October from 47.1 in September but consumer spending rose 0.2 percent in September, its seventh consecutive increase.

Bank of America Merrill Lynch economist Ethan Harris said it is too early to call a turn in the economy.

“While there have been a few hopeful signs in recent releases, overall the data are still weakening,” he said.

Meanwhile, China reported that its official purchasing managers index for the manufacturing sector fell to 49.3 in October from 49.8 in September.

However, Lawrence G McMillan is president of McMillan Analysis, is optimistic about the stock market.

“The S&P 500 index broke out to new all-time highs on Monday and confirmed the breakout by continuing to close above the previous all-time highs (3028) for the next two days,” he wrote at MarketWatch. “This brings the S&P chart into a “bullish” status and puts it in line with our other indicators, which have been bullish for some time now.”