WALL STREET >>> Red Hot September Ends Red

DJIA from triple digits green to red; Bears regain control at the bell.

Bulls took the reins bright and early this morning, as the market cheered a steeper-than-expected drop in weekly jobless claims -- not to mention the highly anticipated announcement that AIG is finally ready to repay its debt to the U.S. Treasury.

However, stocks made a drastic U-turn into negative territory by the time midday rolled around, as traders cast a suspicious eye on the latest Chicago purchasing managers' index. The headline rise to 60.4% in September was much better than expected, but the employment index backpedaled to 53.4% for the month. The mixed report helped trigger a minor selling spree on the Street, and stocks eventually wrapped up the last day of the third quarter with modest losses.

"The S&P 500 Index continues to have trouble near its January peak of 1,150," said Senior Technical Strategist Ryan Detrick. "Nonetheless, with the steadily improving economic data, I think it is a matter of time before we break out to new highs. The weekly jobless claims continue to hover between 500,000 and 450,000, but have recently pulled back toward the low end of that range. A move beneath the critical 450,000 level could be what is needed for another thrust higher."

The Dow Jones Industrial Average (DJIA – 10,788.05) ended on a loss of 47.2 points, or 0.4%, sacrificing its foothold above the 10,800 level. Twenty-one of the Dow's 30 components closed in the red, led by American Express (AXP); meanwhile, Boeing (BA) paced the nine advancing blue chips. Despite today's pullback, the Dow remains perched above its 10-day moving average.

For the month, the blue chip barometer added 7.7% -- its best monthly performance since July 2009. On a quarterly basis, the Dow rose 10.4%. Wow Jones now .... hahaha!!!

The S&P 500 Index (SPX – 1,141.20) finished the day off 3.5 points, or 0.3%, but remained above its 10-day moving average. The SPX rose 8.8% in September, marking its biggest monthly jump since April 2009; for the quarter, the index added 10.7%.

Finally, the Nasdaq Composite (COMP – 2,368.62) joined its peers by swallowing a daily deficit of about 8 points, or 0.3%. However, the COMP tacked on the biggest monthly gain, rising 12% in September -- its strongest month since April 2009. For the third quarter, the COMP climbed 12.3%.

Crude futures wrapped up the day, and the month, on a high note. Traders continued to take their cues from Wednesday's bullish inventory report, but some political unrest in Ecuador also played a part. Police and military personnel have gone on strike to protest cuts to public sector benefits, prompting some geopolitical chaos in the oil-exporting country. Against this backdrop, crude for November delivery settled on a gain of $2.11, or 2.7%, at $79.97 per barrel. The suddenly hot commodity closed out the month of September on an advance of 11.2%, and wrapped up the third quarter 5.7% higher.

Meanwhile, GOLD wrapped up an otherwise stellar month on a low note, with the December contract shedding 70 cents, or 0.1%, to finish at $1,309.60 per ounce. The malleable metal backpedaled as the U.S. dollar climbed, but gold nevertheless racked up a healthy gain for the month. The popular safe haven investment added 4.7% during September, and 5.1% during the third quarter.

Wall Street's major indexes are in retracement phase.

After such a hot Sept., any pullback is but the norm

ZLBT spells it out 4u

C_O_N_S_O_L_I_D_A_T_I_O_N

HAPPY TRADING