Apparently with the Fed QEing whether economic data is good or bad, I guess the importance of economic data falls some. So until earnings season begins it appears economic data is just a mental exercise. This morning the NY Fed printed a horrid number but that's ok, after all QEn is with us.
This week will be heavy on housing data – Tuesday the NAHB homebuilder survey, Wednesday August housing starts (+768K expected), and existing home sales (4.55M seasonally adjusted run rate). Thursday is Philly Fed and US PMI flash (which has yet to catch on as an important economic report in the market's eyes), and the flash figures for Europe and China.
Frankly it feels like we are in some of suspended animation as a torrent of liquidity is thrown in from every direction. When economic or earnings data begin to matter again, we shall see. There are some larger companies reporting this week such as Fedex – but since they already warned I guess it won't matter much.
So at this point the bottom line is nothing matters until it matters (again). The market is stretched here and some basing/consolidation would be healthy to create some new bases on the charts.
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