A lot of strategists seem a bit nervous that more economic data will come in lower than expected. Thus far, their fears seem well-founded.
This morning saw a flurry of disappointing data: consumer confidence for Septembercame in at 86, well below expectations of 92.6. Separately, September Chicago PMI, a measure of manufacturing activity in the Chicago area, also came in below expectations, at 60.5 (estimates of 61.9).
Stocks started up, but drifted lower almost immediately, and lost ground again as the disappointing economic news hit the market. There was a lot of talk that the S&P 500 Index had established a short-term bottom around 1965 yesterday. I noted yesterday that the market had a bid through it most of the day, so buy on the dip has not disappeared.