Today’s news that unemployment dropped from 10.2% to 10% indicates that the deepest recession since the 1930s may be over, says the head of the government agency responsible for officially calling recessions. “Today’s report makes it seem that the trough in employment will be around this month,” said Robert Hall, head of the National Bureau of Economic Research’s Business Cycle Dating Committee. “The trough in output was probably sometime in the summer. The committee will need to balance the midyear date for output against the end-of-year date for employment.”

For three weeks running the Dow has traded between 10,200 and 10,400. This week’s news was mostly positive with the Federal Reserve trimming its forecast for the jobless rate, home re-sales and new home sales rising, and consumer spending climbing more than forecast.

After falling 5.5% from its recent peak in mid-October the S&P 500 roared back this week with a near 3% rally. A steady flow of good news soothed recent worries that the recovery was growing anemic. Ford led the good news parade waving a banner quarter of almost a billion dollars in profits. Tool-maker Stanley Works agreed to buy Black & Decker for $4.5 billion and the next day Warren Buffett announced that he was in the railroad business with a $26 billion “all-in” bet on the US economy purchase of Burlington Northern. What was bad news for Mr. Obama and Democrats was good news for investors as Tuesday’s Republican victories suggested the possibility of future gridlock and perhaps some near-term restraint in big government growth and spending.

The US economy expanded in the third quarter, reversing a year-long contraction of 3.8% for the world’s largest economy. It was the worst economic performance in seven decades. As for duration, the four consecutive quarterly declines were the longest since quarterly records began in 1947. But in the third quarter, the economy came roaring back with a 3.5% gain, well ahead of the 3.2% median forecast of economists surveyed by Bloomberg news.