Interesting action in the markets this morning. Some bad economic data, including a Philly Fed so negative that you have to do a double-take, thinking it either must be a mis-print, or you just read it wrong. It appears to be neither, just a really horrible data set, and has thrown stocks into a nosedive and bond yields plumbing new depths. We were already off to a negative start on overseas weakness.
What is really interesting is that while we are down a blistering 50+ SPX points as of this writing, most commodities are up: oil, natural gas, copper, all up. Also see that preferred stocks and high yield bonds are not taking the hits they took a couple of weeks ago. That complicates the analysis a bit, showing that this is not an across the board risk off move.
Keep looking at the big picture, we’re getting some mixed signals. If we get heavy volume and hold above the recent lows, we may put in an intermediate term bottom here.