Analysts Uncertain About Direction Of Stock Market: FALL ECONOMIC ...
When it comes to forecasts, the investor can take his pick. Depending on which analyst is talking, the stock market is either trendless, moving sideways, heading down or on the verge of a tremendous rally. Each prediction generally comes complete with enough facts and figures to sound convincing.</br></br>For most of August and early September, traders found the stock market to be a lackluster place. Volume on the New York Stock Exchange ran under 100 million shares on most days, the level that has become the dividing line between moderate and heavy trading.</br></br>The closely watched Dow Jones Industrial Average, composed of 30 industrial stocks, fluctuated in a narrow range, trend-See MARKET, G13, Col. 1 ing down to the 1,307 level last Friday, but still only about four percent below the record of 1,359.54, set on July 19. When 1985 opened with the DJIA at 1,211.57, only a brave forecaster was willing to predict the average would reach 1,300 this year. That mark was reached by early spring.</br></br>Even a recent healthy dose of gopd news barely stirred the market. When the nationÛªs unemployment rate dropped to 7 percent, the lowest level in five years, the DJIA bounced 9.86 points but did not carry the broader market. ÛÏIt was a traderÛªs rally, one without conviction and without durability,ÛªÛª Michael Metz, analyst for Oppenhei-mer & Co., said at the time. ÛÏThe market was starved for good news and was ready to react to it.Û</br></br>Given its earlier momentum, the marketÛªs sagging activity and enthusiasm has puzzled analysts trying to forecast what happens next.