Markets May Be Up, But Current Economic Data Is Still Very Bad

by: Mark Hines

With all the hype and hope surrounding the Senate’s move closer to passing a $900 billion economic stimulus plan, the ECB cutting rates, Obama’s big talk, and all the other pseudo-good news… the S&P 500 is up over the last week.

However, the economic data continues to be very bad, and I believe the larger market trend should continue to be downward. I also believe the recent rally could continue over the next one to two trading days (based on the imminence of the Senate’s stimulus package and Monday's scheduled speech and news conference for Geithner and Obama, respectively), and if it does I’ll be quick to hop on the short side of the market.